Synopsys (SNPS) ended the recent trading session at $507.03, demonstrating a +0.46% swing from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.4%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.63%.
The maker of software used to test and develop chips’s shares have seen a decrease of 1.83% over the last month, not keeping up with the Computer and Technology sector’s gain of 4.88% and the S&P 500’s gain of 3.76%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $3.28, reflecting a 3.47% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.62 billion, indicating a 1.01% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.12 per share and revenue of $6.13 billion, which would represent changes of +17.25% and +4.93%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Synopsys possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 38.48. This indicates a premium in contrast to its industry’s Forward P/E of 30.04.
Investors should also note that SNPS has a PEG ratio of 2.49 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Computer – Software industry stood at 2.52 at the close of the market yesterday.
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 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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
