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Synopsys (SNPS) Beats Stock Market Upswing: What Investors Need to Know
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Synopsys (SNPS - Free Report) closed the most recent trading day at $548.90, moving +1.33% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.43%.
Coming into today, shares of the maker of software used to test and develop chips had gained 3.29% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 2.08%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $3.41, up 30.15% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.65 billion, indicating a 20.87% growth compared to the corresponding quarter of the prior year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.41 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +19.84% and +13.1%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 40.41. This valuation marks a premium compared to its industry's average Forward P/E of 33.52.
Also, we should mention that SNPS has a PEG ratio of 2.37. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.34.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Synopsys (SNPS) Beats Stock Market Upswing: What Investors Need to Know
Synopsys (SNPS - Free Report) closed the most recent trading day at $548.90, moving +1.33% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.43%.
Coming into today, shares of the maker of software used to test and develop chips had gained 3.29% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 2.08%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company is expected to report EPS of $3.41, up 30.15% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.65 billion, indicating a 20.87% growth compared to the corresponding quarter of the prior year.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $13.41 per share and revenue of $6.61 billion. These results would represent year-over-year changes of +19.84% and +13.1%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 40.41. This valuation marks a premium compared to its industry's average Forward P/E of 33.52.
Also, we should mention that SNPS has a PEG ratio of 2.37. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.34.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.