In the latest close session, Synopsys (SNPS) was down 6.13% at $480.00. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.72%.
The maker of software used to test and develop chips's stock has climbed by 8.86% in the past month, exceeding the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to go public on February 25, 2026. It is anticipated that the company will report an EPS of $3.57, marking a 17.82% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.39 billion, indicating a 64.28% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.39 per share and revenue of $9.63 billion, indicating changes of +11.46% and +36.45%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 0.06% decrease. Synopsys is currently a Zacks Rank #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 35.53. This indicates a premium in contrast to its industry's Forward P/E of 21.32.
It's also important to note that SNPS currently trades at a PEG ratio of 2.99. 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. The Computer - Software industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 39% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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