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Synopsys (SNPS) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Synopsys (SNPS - Free Report) closed at $607.94, marking a -1.23% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 6.82% over the past month. This has lagged the Computer and Technology sector's gain of 8.61% and outpaced the S&P 500's gain of 4.34% in that time.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company's upcoming EPS is projected at $3.26, signifying a 13.19% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 2.55% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.03 per share and a revenue of $6.19 billion, indicating changes of +16.44% and +5.91%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 47.23. This valuation marks a premium compared to its industry's average Forward P/E of 30.58.
It is also worth noting that SNPS currently has a PEG ratio of 2.94. 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. SNPS's industry had an average PEG ratio of 2.56 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 155, which puts it in the bottom 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Synopsys (SNPS) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Synopsys (SNPS - Free Report) closed at $607.94, marking a -1.23% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.07%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the maker of software used to test and develop chips had gained 6.82% over the past month. This has lagged the Computer and Technology sector's gain of 8.61% and outpaced the S&P 500's gain of 4.34% in that time.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company's upcoming EPS is projected at $3.26, signifying a 13.19% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 2.55% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.03 per share and a revenue of $6.19 billion, indicating changes of +16.44% and +5.91%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Synopsys. Such recent modifications usually signify the changing landscape 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 47.23. This valuation marks a premium compared to its industry's average Forward P/E of 30.58.
It is also worth noting that SNPS currently has a PEG ratio of 2.94. 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. SNPS's industry had an average PEG ratio of 2.56 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 155, which puts it in the bottom 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.