In the latest close session, Synopsys (SNPS) was down 1.29% at $395.60. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.25%.
Shares of the maker of software used to test and develop chips witnessed a loss of 10.54% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 4.36%.
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 December 10, 2025. The company's upcoming EPS is projected at $2.79, signifying a 17.94% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.25 billion, indicating a 37.59% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.83 per share and revenue of $7.05 billion, which would represent changes of -2.8% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Synopsys. 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys presently features a Zacks Rank of #3 (Hold).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 28.53. Its industry sports an average Forward P/E of 24.64, so one might conclude that Synopsys is trading at a premium comparatively.
It's also important to note that SNPS currently trades at a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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