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Synopsys (SNPS) Beats Stock Market Upswing: What Investors Need to Know
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In the latest close session, Synopsys (SNPS - Free Report) was up +1.57% at $625.80. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 1.1%, and the technology-dominated Nasdaq saw an increase of 1.39%.
The maker of software used to test and develop chips's shares have seen an increase of 12.12% over the last month, surpassing the Computer and Technology sector's gain of 5.15% and the S&P 500's gain of 2%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on September 9, 2025. The company is forecasted to report an EPS of $3.84, showcasing a 11.95% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.77 billion, indicating a 15.9% upward movement from the same quarter last year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $15.09 per share and revenue of $6.77 billion. These results would represent year-over-year changes of +14.32% and +8.03%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. Right now, Synopsys possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 40.83. This indicates a premium in contrast to its industry's Forward P/E of 23.29.
We can also see that SNPS currently has a PEG ratio of 2.92. 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. The average PEG ratio for the Computer - Software industry stood at 2.02 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Synopsys (SNPS) Beats Stock Market Upswing: What Investors Need to Know
In the latest close session, Synopsys (SNPS - Free Report) was up +1.57% at $625.80. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 1.1%, and the technology-dominated Nasdaq saw an increase of 1.39%.
The maker of software used to test and develop chips's shares have seen an increase of 12.12% over the last month, surpassing the Computer and Technology sector's gain of 5.15% and the S&P 500's gain of 2%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on September 9, 2025. The company is forecasted to report an EPS of $3.84, showcasing a 11.95% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.77 billion, indicating a 15.9% upward movement from the same quarter last year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $15.09 per share and revenue of $6.77 billion. These results would represent year-over-year changes of +14.32% and +8.03%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. Right now, Synopsys possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 40.83. This indicates a premium in contrast to its industry's Forward P/E of 23.29.
We can also see that SNPS currently has a PEG ratio of 2.92. 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. The average PEG ratio for the Computer - Software industry stood at 2.02 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.