We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, Synopsys (SNPS - Free Report) closed at $451.71, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the maker of software used to test and develop chips had gained 7.27% over the past month, outpacing the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% in that time.
Synopsys will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. The company is expected to report EPS of $2.73, up 30% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 18.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.82 per share and revenue of $5.81 billion, which would represent changes of +21.57% and +14.36%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Synopsys currently has a Forward P/E ratio of 42.29. This valuation marks a premium compared to its industry's average Forward P/E of 30.24.
We can also see that SNPS currently has a PEG ratio of 2.71. 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 2.51 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Synopsys (SNPS - Free Report) closed at $451.71, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 0.68%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the maker of software used to test and develop chips had gained 7.27% over the past month, outpacing the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% in that time.
Synopsys will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. The company is expected to report EPS of $2.73, up 30% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 18.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.82 per share and revenue of $5.81 billion, which would represent changes of +21.57% and +14.36%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Synopsys currently has a Forward P/E ratio of 42.29. This valuation marks a premium compared to its industry's average Forward P/E of 30.24.
We can also see that SNPS currently has a PEG ratio of 2.71. 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 2.51 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.