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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 +2.28% at $480.42. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.
Shares of the maker of software used to test and develop chips witnessed a gain of 1.29% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.02%, and the S&P 500's gain of 0.54%.
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 $3.56, marking a 17.49% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.39 billion, reflecting a 64.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $14.4 per share and a revenue of $9.63 billion, demonstrating changes of +11.54% and +36.55%, respectively, from the preceding year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 moved 10.61% higher. As of now, Synopsys holds a Zacks Rank of #3 (Hold).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 32.63. Its industry sports an average Forward P/E of 22.43, so one might conclude that Synopsys is trading at a premium comparatively.
We can also see that SNPS currently has a PEG ratio of 2.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNPS's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% 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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Synopsys (SNPS) Beats Stock Market Upswing: What Investors Need to Know
In the latest close session, Synopsys (SNPS - Free Report) was up +2.28% at $480.42. The stock's performance was ahead of the S&P 500's daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.
Shares of the maker of software used to test and develop chips witnessed a gain of 1.29% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.02%, and the S&P 500's gain of 0.54%.
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 $3.56, marking a 17.49% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.39 billion, reflecting a 64.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $14.4 per share and a revenue of $9.63 billion, demonstrating changes of +11.54% and +36.55%, respectively, from the preceding year.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 moved 10.61% higher. As of now, Synopsys holds a Zacks Rank of #3 (Hold).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 32.63. Its industry sports an average Forward P/E of 22.43, so one might conclude that Synopsys is trading at a premium comparatively.
We can also see that SNPS currently has a PEG ratio of 2.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNPS's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% 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.