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Synopsys (SNPS) Stock Dips While Market Gains: Key Facts

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Synopsys (SNPS - Free Report) closed the most recent trading day at $540.46, moving -1.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.36%.

Prior to today's trading, shares of the maker of software used to test and develop chips had gained 5.51% over the past month. This has outpaced the Computer and Technology sector's gain of 4.29% and the S&P 500's gain of 2.4% in that time.

Analysts and investors alike will be keeping a close eye on 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. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 20.87% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.41 per share and a revenue of $6.61 billion, signifying shifts of +19.84% and +13.1%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has remained steady. Synopsys is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 40.94. This signifies a premium in comparison to the average Forward P/E of 33.45 for its industry.

Investors should also note that SNPS has a PEG ratio of 2.4 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNPS's industry had an average PEG ratio of 2.36 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 96, which puts it in the top 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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