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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
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Synopsys (SNPS - Free Report) closed at $459.75 in the latest trading session, marking a -0.34% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The maker of software used to test and develop chips's stock has dropped by 0.94% in the past month, exceeding the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.04, showcasing a 59.16% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.58 billion, reflecting a 23.3% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.09 per share and a revenue of $5.83 billion, signifying shifts of +24.61% and +14.67%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently a Zacks Rank #1 (Strong Buy).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 41.6. This indicates a premium in contrast to its industry's Forward P/E of 27.59.
Investors should also note that SNPS has a PEG ratio of 2.54 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.2.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Synopsys (SNPS) Registers a Bigger Fall Than the Market: Important Facts to Note
Synopsys (SNPS - Free Report) closed at $459.75 in the latest trading session, marking a -0.34% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The maker of software used to test and develop chips's stock has dropped by 0.94% in the past month, exceeding the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.04, showcasing a 59.16% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.58 billion, reflecting a 23.3% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.09 per share and a revenue of $5.83 billion, signifying shifts of +24.61% and +14.67%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently a Zacks Rank #1 (Strong Buy).
From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 41.6. This indicates a premium in contrast to its industry's Forward P/E of 27.59.
Investors should also note that SNPS has a PEG ratio of 2.54 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.2.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.