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Synopsys (SNPS) Outpaces Stock Market Gains: What You Should Know

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Synopsys (SNPS - Free Report) ended the recent trading session at $449.35, demonstrating a +2.52% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 0.59%.

The stock of maker of software used to test and develop chips has fallen by 1.67% in the past month, leading the Computer and Technology sector's loss of 1.69% and undershooting the S&P 500's loss of 0.23%.

The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on December 10, 2025. The company is predicted to post an EPS of $2.79, indicating a 17.94% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.25 billion, up 37.59% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $12.83 per share and a revenue of $7.05 billion, demonstrating changes of -2.8% and 0%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.67% lower within the past month. Synopsys is currently a Zacks Rank #3 (Hold).

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 31.28. For comparison, its industry has an average Forward P/E of 24.87, which means Synopsys is trading at a premium to the group.

It's also important to note that SNPS currently trades at a PEG ratio of 3.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Software industry stood at 1.81 at the close of the market yesterday.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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