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Synopsys (SNPS) Declines More Than Market: Some Information for Investors

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In the latest trading session, Synopsys (SNPS - Free Report) closed at $592.01, marking a -1.91% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.69%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.82%.

Shares of the maker of software used to test and develop chips witnessed a loss of 5.11% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.71%, and the S&P 500's gain of 3.79%.

The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected 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. Simultaneously, our latest consensus estimate expects the revenue to be $1.77 billion, showing a 15.9% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.13 per share and revenue of $6.77 billion, which would represent changes of +14.62% and +8.03%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Synopsys. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Synopsys is currently a Zacks Rank #4 (Sell).

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 39.88. Its industry sports an average Forward P/E of 26.35, so one might conclude that Synopsys is trading at a premium comparatively.

Meanwhile, SNPS's PEG ratio is currently 2.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.92.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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