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Synopsys (SNPS) Stock Moves -0.51%: What You Should Know

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Synopsys (SNPS - Free Report) closed at $290.08 in the latest trading session, marking a -0.51% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.08%. At the same time, the Dow lost 1.95%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the maker of software used to test and develop chips had gained 5.13% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and lagging the S&P 500's gain of 5.29% in that time.

Synopsys will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.84, up 1.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 11.01% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Synopsys currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Synopsys is holding a Forward P/E ratio of 28.55. This valuation marks a premium compared to its industry's average Forward P/E of 25.29.

It is also worth noting that SNPS currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNPS's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 128, which puts it in the top 50% of all 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.

To follow SNPS in the coming trading sessions, be sure to utilize Zacks.com.


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