At the last market close, Synopsys (SNPS) reached $495.82, with a move of -0.87% compared to the day before. This change lagged the S&P 500’s daily loss of 0.04%. Elsewhere, the Dow Jones rose 0.07%, while the tech-heavy Nasdaq fell 0.05%.
Today, shares of the maker of software used to test and develop chips are down 8.69% over the past month. During that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.
Market participants will closely monitor Synopsys’ financial results in the upcoming release. The company’s earnings per share (EPS) are expected to be $3.44, reflecting a decline of 3.37% from the same quarter last year. Additionally, our latest consensus estimate is calling for revenues of $1.45 billion, indicating a downside move of 11.9% from the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.91 per share and revenue of $6.77 billion, which would represent changes of +12.95% and +8.04%, respectively, from the prior year .
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions generally reflect the latest short-term business trends, which may change frequently. Thus, positive estimate changes indicate analyst optimism about the company’s business and profitability.
Our research shows that these estimate revisions are directly related to impending stock price movement. To benefit from this, we have developed the Zacks Rank, a unique model that integrates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of exceeding expectations, corroborated by third-party audits, with #1 stocks posting an average annual return of +25 % yield. since 1988. Over the past 30 days, our consensus EPS projection has moved 4.52% lower. Synopsys currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Synopsys currently has a Forward P/E ratio of 33.55. This represents a premium compared to the industry’s average forward price-to-earnings ratio of 31.98.
It should also be noted that SNPS currently has a PEG ratio of 2.34. This metric is used in the same way as the famous price-to-earnings ratio, but the PEG ratio also takes into account the stock’s expected earnings growth. At the end of yesterday’s trading, the Computer Software industry had an average PEG ratio of 2.34.
The Computer Software industry is part of the Computer and Technology sector. The current Zacks Industry Rank of 59 puts this sector in the top 24% of all industries, with a total of over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% of sectors perform better than the bottom half by a factor of 2 to 1.
Keep in mind that you can rely on Zacks.com to see all of these metrics impacting the stock, and more, in subsequent trading sessions.
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Synopsys, Inc. (SNPS): Free Stock Analysis Report
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