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Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $440.31, marking a -4.89% move from the previous day. This move lagged the S&P 500's daily loss of 4.36%. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
The maker of software used to test and develop chips's shares have seen a decrease of 7.9% over the last month, surpassing the Computer and Technology sector's loss of 11.65% and falling behind the S&P 500's loss of 0.38%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $4.12, up 42.07% from the prior-year quarter. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.14 per share and revenue of $9.72 billion. These totals would mark changes of +17.27% and +37.77%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 1.49% higher. Synopsys currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 25.05. Its industry sports an average Forward P/E of 16.91, so one might conclude that Synopsys is trading at a premium comparatively.
Meanwhile, SNPS's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.45.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
In the latest trading session, Synopsys (SNPS - Free Report) closed at $440.31, marking a -4.89% move from the previous day. This move lagged the S&P 500's daily loss of 4.36%. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
The maker of software used to test and develop chips's shares have seen a decrease of 7.9% over the last month, surpassing the Computer and Technology sector's loss of 11.65% and falling behind the S&P 500's loss of 0.38%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $4.12, up 42.07% from the prior-year quarter. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.14 per share and revenue of $9.72 billion. These totals would mark changes of +17.27% and +37.77%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 1.49% higher. Synopsys currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 25.05. Its industry sports an average Forward P/E of 16.91, so one might conclude that Synopsys is trading at a premium comparatively.
Meanwhile, SNPS's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 1.45.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.