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Synopsys (SNPS) Rises Higher Than Market: Key Facts

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In the latest close session, Synopsys (SNPS - Free Report) was up +1.15% at $591.46. This move outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.38%.

The maker of software used to test and develop chips's shares have seen an increase of 24.28% over the last month, surpassing the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.

The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.84, reflecting a 11.95% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.77 billion, up 15.9% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.09 per share and revenue of $6.77 billion, indicating changes of +14.32% and +8.03%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. Synopsys currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 38.75. This signifies a premium in comparison to the average Forward P/E of 24.91 for its industry.

We can also see that SNPS currently has a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.32.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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