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Synopsys (SNPS) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $421.61, marking a -3.54% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
The stock of maker of software used to test and develop chips has fallen by 15.34% in the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on February 25, 2026. The company's earnings per share (EPS) are projected to be $3.57, reflecting a 17.82% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, up 64.28% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.39 per share and a revenue of $9.63 billion, representing changes of +11.46% and +36.45%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.04% lower. At present, Synopsys boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 30.38. This valuation marks a premium compared to its industry average Forward P/E of 16.78.
We can also see that SNPS currently has a PEG ratio of 2.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Synopsys (SNPS) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Synopsys (SNPS - Free Report) closed at $421.61, marking a -3.54% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.14%.
The stock of maker of software used to test and develop chips has fallen by 15.34% in the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on February 25, 2026. The company's earnings per share (EPS) are projected to be $3.57, reflecting a 17.82% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.39 billion, up 64.28% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.39 per share and a revenue of $9.63 billion, representing changes of +11.46% and +36.45%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.04% lower. At present, Synopsys boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 30.38. This valuation marks a premium compared to its industry average Forward P/E of 16.78.
We can also see that SNPS currently has a PEG ratio of 2.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.