Synopsys (SNPS) closed at $464.40 in the latest trading session, marking a +1.82% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq added 1.15%.
The maker of software used to test and develop chips's shares have seen a decrease of 6.39% over the last month, not keeping up with the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.79, indicating a 17.94% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.25 billion, up 37.59% from the year-ago period.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $12.83 per share and revenue of $7.05 billion. These results would represent year-over-year changes of -2.8% and +12.52%, respectively.
Investors should also note any recent changes to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Synopsys holds a Zacks Rank of #5 (Strong Sell).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 35.54. This expresses a premium compared to the average Forward P/E of 29.24 of its industry.
We can additionally observe that SNPS currently boasts a PEG ratio of 3.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.11.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
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% 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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