Synopsys (SNPS) closed the most recent trading day at $596.80, moving -1.6% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.22%.
The stock of maker of software used to test and develop chips has risen by 0.83% in the past month, lagging the Computer and Technology sector's gain of 2.56% and the S&P 500's gain of 2.65%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 9, 2025. The company is forecasted to report an EPS of $3.84, showcasing a 11.95% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.77 billion, up 15.9% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.13 per share and a revenue of $6.77 billion, signifying shifts of +14.62% and +8.03%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Synopsys is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 40.08. This expresses a premium compared to the average Forward P/E of 25.98 of its industry.
We can also see that SNPS currently has a PEG ratio of 2.87. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Synopsys, Inc. (SNPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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