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Why Synopsys (SNPS) Dipped More Than Broader Market Today
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In the latest close session, Synopsys (SNPS - Free Report) was down 2.94% at $483.89. This move lagged the S&P 500's daily loss of 0.49%. On the other hand, the Dow registered a loss of 0.05%, and the technology-centric Nasdaq decreased by 0.9%.
Heading into today, shares of the maker of software used to test and develop chips had gained 30.12% over the past month, outpacing the Computer and Technology sector's gain of 21.92% and the S&P 500's gain of 12.8%.
The upcoming earnings release of Synopsys will be of great interest to investors. In that report, analysts expect Synopsys to post earnings of $3.17 per share. This would mark a year-over-year decline of 13.62%. Our most recent consensus estimate is calling for quarterly revenue of $2.25 billion, up 40.29% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.43 per share and revenue of $9.62 billion, indicating changes of +11.77% and +36.43%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Synopsys currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 34.55. This represents a premium compared to its industry average Forward P/E of 15.91.
One should further note that SNPS currently holds a PEG ratio of 2.91. 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 Computer - Software industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 27% 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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Why Synopsys (SNPS) Dipped More Than Broader Market Today
In the latest close session, Synopsys (SNPS - Free Report) was down 2.94% at $483.89. This move lagged the S&P 500's daily loss of 0.49%. On the other hand, the Dow registered a loss of 0.05%, and the technology-centric Nasdaq decreased by 0.9%.
Heading into today, shares of the maker of software used to test and develop chips had gained 30.12% over the past month, outpacing the Computer and Technology sector's gain of 21.92% and the S&P 500's gain of 12.8%.
The upcoming earnings release of Synopsys will be of great interest to investors. In that report, analysts expect Synopsys to post earnings of $3.17 per share. This would mark a year-over-year decline of 13.62%. Our most recent consensus estimate is calling for quarterly revenue of $2.25 billion, up 40.29% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.43 per share and revenue of $9.62 billion, indicating changes of +11.77% and +36.43%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Synopsys currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 34.55. This represents a premium compared to its industry average Forward P/E of 15.91.
One should further note that SNPS currently holds a PEG ratio of 2.91. 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 Computer - Software industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 27% 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.