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Synopsys (SNPS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $503.98, marking a +1.01% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.17%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.09%.
The maker of software used to test and develop chips's stock has climbed by 4.54% in the past month, falling short of the Computer and Technology sector's gain of 10.31% and the S&P 500's gain of 4.59%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on May 27, 2026. The company is expected to report EPS of $3.17, down 13.62% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.25 billion, reflecting a 40.29% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.48 per share and revenue of $9.62 billion, indicating changes of +12.16% and +36.43%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently a Zacks Rank #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 34.46. This valuation marks a premium compared to its industry average Forward P/E of 16.81.
Investors should also note that SNPS has a PEG ratio of 2.9 right now. 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 was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.
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Synopsys (SNPS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Synopsys (SNPS - Free Report) closed at $503.98, marking a +1.01% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.17%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.09%.
The maker of software used to test and develop chips's stock has climbed by 4.54% in the past month, falling short of the Computer and Technology sector's gain of 10.31% and the S&P 500's gain of 4.59%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on May 27, 2026. The company is expected to report EPS of $3.17, down 13.62% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.25 billion, reflecting a 40.29% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.48 per share and revenue of $9.62 billion, indicating changes of +12.16% and +36.43%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently a Zacks Rank #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 34.46. This valuation marks a premium compared to its industry average Forward P/E of 16.81.
Investors should also note that SNPS has a PEG ratio of 2.9 right now. 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 was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.