In the latest trading session, Synopsys (SNPS - Free Report) closed at $140.62, marking a +0.39% move from the previous day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the maker of software used to test and develop chips had lost 1.2% over the past month. This has lagged the Computer and Technology sector's gain of 4.19% and the S&P 500's gain of 3.37% in that time.
SNPS will be looking to display strength as it nears its next earnings release. On that day, SNPS is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $822.30 million, up 0.23% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.22 per share and revenue of $3.62 billion, which would represent changes of +14.47% and +7.85%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SNPS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 10.59% higher. SNPS is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, SNPS is currently trading at a Forward P/E ratio of 26.82. Its industry sports an average Forward P/E of 31.99, so we one might conclude that SNPS is trading at a discount comparatively.
It is also worth noting that SNPS currently has a PEG ratio of 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.3 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.