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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
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Synopsys (SNPS - Free Report) closed the most recent trading day at $428.96, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.
Prior to today's trading, shares of the maker of software used to test and develop chips had lost 0.62% over the past month. This has lagged the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% 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. In that report, analysts expect Synopsys to post earnings of $2.73 per share. This would mark year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 18.76% from the year-ago period.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $10.82 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +21.57% and +14.36%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 40.31. This valuation marks a premium compared to its industry's average Forward P/E of 28.48.
Meanwhile, SNPS's PEG ratio is currently 2.58. 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 industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Synopsys (SNPS) Dips More Than Broader Markets: What You Should Know
Synopsys (SNPS - Free Report) closed the most recent trading day at $428.96, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.
Prior to today's trading, shares of the maker of software used to test and develop chips had lost 0.62% over the past month. This has lagged the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% 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. In that report, analysts expect Synopsys to post earnings of $2.73 per share. This would mark year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 18.76% from the year-ago period.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $10.82 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +21.57% and +14.36%, respectively.
Any recent changes to analyst estimates for Synopsys should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 40.31. This valuation marks a premium compared to its industry's average Forward P/E of 28.48.
Meanwhile, SNPS's PEG ratio is currently 2.58. 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 industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.