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Synopsys (SNPS) Stock Declines While Market Improves: Some Information for Investors
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Synopsys (SNPS - Free Report) closed the most recent trading day at $514.49, moving -1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 9.22% outpaced the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is predicted to post an EPS of $3.56, indicating a 17.49% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.39 billion, indicating a 64.28% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.4 per share and a revenue of $9.63 billion, indicating changes of +11.54% and +36.55%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 10.61% higher. Synopsys is currently a Zacks Rank #3 (Hold).
In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 36.1. This valuation marks a premium compared to its industry average Forward P/E of 23.03.
Also, we should mention that SNPS has a PEG ratio of 3.04. 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 1.91.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 31% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Synopsys (SNPS) Stock Declines While Market Improves: Some Information for Investors
Synopsys (SNPS - Free Report) closed the most recent trading day at $514.49, moving -1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 9.22% outpaced the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is predicted to post an EPS of $3.56, indicating a 17.49% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.39 billion, indicating a 64.28% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.4 per share and a revenue of $9.63 billion, indicating changes of +11.54% and +36.55%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 10.61% higher. Synopsys is currently a Zacks Rank #3 (Hold).
In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 36.1. This valuation marks a premium compared to its industry average Forward P/E of 23.03.
Also, we should mention that SNPS has a PEG ratio of 3.04. 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 1.91.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 31% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.