In the latest trading session, Synopsys (SNPS - Free Report) closed at $141.75, marking a +1.81% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the maker of software used to test and develop chips had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 6.28%, while the S&P 500 gained 4.72%.
Investors will be hoping for strength from SNPS as it approaches its next earnings release, which is expected to be December 4, 2019. On that day, SNPS is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 44.87%. Meanwhile, our latest consensus estimate is calling for revenue of $849.55 million, up 6.85% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for SNPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate remained stagnant. SNPS is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SNPS is holding a Forward P/E ratio of 27.89. This represents a discount compared to its industry's average Forward P/E of 30.03.
Investors should also note that SNPS has a PEG ratio of 2.32 right now. 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. The Computer - Software was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.