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Here's Why Synopsys (SNPS) Fell More Than Broader Market
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Synopsys (SNPS - Free Report) ended the recent trading session at $455.20, demonstrating a -1.62% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 0.91%.
Prior to today's trading, shares of the maker of software used to test and develop chips had lost 1.16% was narrower than the Computer and Technology sector's loss of 11.52% and the S&P 500's loss of 2.64%.
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 December 8, 2026. The company's upcoming EPS is projected at $4.12, signifying a 42.07% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.56 billion, showing a 13.38% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.14 per share and a revenue of $9.72 billion, representing changes of +17.27% and +37.77%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.49% upward. As of now, Synopsys holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 25.03. This valuation marks a premium compared to its industry average Forward P/E of 17.5.
It's also important to note that SNPS currently trades at a PEG ratio of 1.12. 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 average PEG ratio for the Computer - Software industry stood at 1.41 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Synopsys (SNPS) Fell More Than Broader Market
Synopsys (SNPS - Free Report) ended the recent trading session at $455.20, demonstrating a -1.62% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 0.91%.
Prior to today's trading, shares of the maker of software used to test and develop chips had lost 1.16% was narrower than the Computer and Technology sector's loss of 11.52% and the S&P 500's loss of 2.64%.
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 December 8, 2026. The company's upcoming EPS is projected at $4.12, signifying a 42.07% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.56 billion, showing a 13.38% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.14 per share and a revenue of $9.72 billion, representing changes of +17.27% and +37.77%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.49% upward. As of now, Synopsys holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 25.03. This valuation marks a premium compared to its industry average Forward P/E of 17.5.
It's also important to note that SNPS currently trades at a PEG ratio of 1.12. 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 average PEG ratio for the Computer - Software industry stood at 1.41 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.