Synopsys (SNPS) closed the most recent trading day at $438.90, moving +2.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.9%.
The maker of software used to test and develop chips's shares have seen a decrease of 18.72% over the last month, not keeping up with the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.
Market participants will be closely following the financial results of Synopsys in its upcoming release. The company plans to announce its earnings on February 25, 2026. On that day, Synopsys is projected to report earnings of $3.57 per share, which would represent year-over-year growth of 17.82%. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, up 64.28% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.39 per share and a revenue of $9.63 billion, signifying shifts of +11.46% and +36.45%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Synopsys is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 29.67. For comparison, its industry has an average Forward P/E of 18.38, which means Synopsys is trading at a premium to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.5. 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 1.5.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Synopsys, Inc. (SNPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
