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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
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Synopsys (SNPS - Free Report) ended the recent trading session at $501.52, demonstrating a -1.67% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.24%. Meanwhile, the Dow experienced a drop of 1.07%, and the technology-dominated Nasdaq saw a decrease of 1.54%.
Shares of the maker of software used to test and develop chips have appreciated by 15.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 15.86%, and outperforming the S&P 500's gain of 7.72%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to go public on May 27, 2026. The company is predicted to post an EPS of $3.17, indicating a 13.62% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.25 billion, showing a 40.29% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.48 per share and a revenue of $9.62 billion, indicating changes of +12.16% and +36.43%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Synopsys holds a Zacks Rank of #3 (Hold).
With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 35.22. This represents a premium compared to its industry average Forward P/E of 15.73.
Meanwhile, SNPS's PEG ratio is currently 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.52.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
Synopsys (SNPS - Free Report) ended the recent trading session at $501.52, demonstrating a -1.67% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.24%. Meanwhile, the Dow experienced a drop of 1.07%, and the technology-dominated Nasdaq saw a decrease of 1.54%.
Shares of the maker of software used to test and develop chips have appreciated by 15.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 15.86%, and outperforming the S&P 500's gain of 7.72%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to go public on May 27, 2026. The company is predicted to post an EPS of $3.17, indicating a 13.62% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.25 billion, showing a 40.29% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.48 per share and a revenue of $9.62 billion, indicating changes of +12.16% and +36.43%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Synopsys holds a Zacks Rank of #3 (Hold).
With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 35.22. This represents a premium compared to its industry average Forward P/E of 15.73.
Meanwhile, SNPS's PEG ratio is currently 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.52.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.