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Synopsys (SNPS) Increases Despite Market Slip: Here's What You Need to Know
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Synopsys (SNPS - Free Report) closed the most recent trading day at $490.19, moving +1.72% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.31% for the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.
Shares of the maker of software used to test and develop chips have appreciated by 10.8% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.14%, and the S&P 500's gain of 0.87%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's upcoming EPS is projected at $4.12, signifying a 42.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.56 billion, indicating a 13.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.14 per share and a revenue of $9.72 billion, demonstrating changes of +17.27% and +37.77%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% increase. At present, Synopsys boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 31.83. This valuation marks a premium compared to its industry average Forward P/E of 17.79.
Investors should also note that SNPS has a PEG ratio of 1.42 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Synopsys (SNPS) Increases Despite Market Slip: Here's What You Need to Know
Synopsys (SNPS - Free Report) closed the most recent trading day at $490.19, moving +1.72% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.31% for the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.38%.
Shares of the maker of software used to test and develop chips have appreciated by 10.8% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.14%, and the S&P 500's gain of 0.87%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's upcoming EPS is projected at $4.12, signifying a 42.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.56 billion, indicating a 13.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.14 per share and a revenue of $9.72 billion, demonstrating changes of +17.27% and +37.77%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% increase. At present, Synopsys boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 31.83. This valuation marks a premium compared to its industry average Forward P/E of 17.79.
Investors should also note that SNPS has a PEG ratio of 1.42 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.