In the latest trading session, Synopsys (SNPS) closed at $447.07, marking a +1.86% move from the previous day. This move outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
The maker of software used to test and develop chips's shares have seen a decrease of 1.64% over the last month, surpassing the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company is forecasted to report an EPS of $3.39, showcasing a 13% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.6 billion, up 10.1% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.88 per share and a revenue of $6.77 billion, indicating changes of +12.73% and +7.98%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Right now, Synopsys possesses a Zacks Rank of #3 (Hold).
Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 29.51. This represents a premium compared to its industry's average Forward P/E of 25.66.
Investors should also note that SNPS has a PEG ratio of 2.23 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.23 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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