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Synopsys (SNPS) Rises As Market Takes a Dip: Key Facts

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Synopsys (SNPS - Free Report) closed the most recent trading day at $625.33, moving +1.2% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.03%.

Heading into today, shares of the maker of software used to test and develop chips had gained 5.67% over the past month, outpacing the Computer and Technology sector's gain of 4.93% and the S&P 500's gain of 3.47%.

Market participants will be closely following the financial results of Synopsys in its upcoming release. The company plans to announce its earnings on September 9, 2025. It is anticipated that the company will report an EPS of $3.84, marking a 11.95% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.77 billion, indicating a 15.9% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $15.09 per share and a revenue of $6.77 billion, demonstrating changes of +14.32% and +8.03%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Synopsys is currently a Zacks Rank #4 (Sell).

Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 40.95. This indicates a premium in contrast to its industry's Forward P/E of 26.7.

Also, we should mention that SNPS has a PEG ratio of 2.93. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.05.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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