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Why Synopsys (SNPS) Outpaced the Stock Market Today
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In the latest close session, Synopsys (SNPS - Free Report) was up +1.28% at $453.35. The stock outpaced the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 1.37%.
Shares of the maker of software used to test and develop chips witnessed a loss of 9.66% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.68%, and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.79, marking a 17.94% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.25 billion, showing a 37.59% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $7.05 billion. These totals would mark changes of -2.8% and +12.52%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. As of now, Synopsys holds a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 34.88. For comparison, its industry has an average Forward P/E of 27.14, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 3.07. 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 2.07 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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Why Synopsys (SNPS) Outpaced the Stock Market Today
In the latest close session, Synopsys (SNPS - Free Report) was up +1.28% at $453.35. The stock outpaced the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 1.37%.
Shares of the maker of software used to test and develop chips witnessed a loss of 9.66% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.68%, and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.79, marking a 17.94% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.25 billion, showing a 37.59% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $7.05 billion. These totals would mark changes of -2.8% and +12.52%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. As of now, Synopsys holds a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 34.88. For comparison, its industry has an average Forward P/E of 27.14, which means Synopsys is trading at a premium to the group.
We can also see that SNPS currently has a PEG ratio of 3.07. 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 2.07 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.