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Why Synopsys (SNPS) Outpaced the Stock Market Today
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Synopsys (SNPS - Free Report) closed at $546.38 in the latest trading session, marking a +1.42% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. Meanwhile, the Dow gained 1.64%, and the Nasdaq, a tech-heavy index, added 1.03%.
The the stock of maker of software used to test and develop chips has fallen by 9.46% in the past month, lagging the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on August 21, 2024. The company's earnings per share (EPS) are projected to be $3.26, reflecting a 13.19% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 2.55% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $13.03 per share and a revenue of $6.19 billion, demonstrating changes of +16.44% and +5.91%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 41.34. Its industry sports an average Forward P/E of 29.3, so one might conclude that Synopsys is trading at a premium comparatively.
Also, we should mention that SNPS has a PEG ratio of 2.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.4 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why Synopsys (SNPS) Outpaced the Stock Market Today
Synopsys (SNPS - Free Report) closed at $546.38 in the latest trading session, marking a +1.42% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. Meanwhile, the Dow gained 1.64%, and the Nasdaq, a tech-heavy index, added 1.03%.
The the stock of maker of software used to test and develop chips has fallen by 9.46% in the past month, lagging the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on August 21, 2024. The company's earnings per share (EPS) are projected to be $3.26, reflecting a 13.19% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 2.55% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $13.03 per share and a revenue of $6.19 billion, demonstrating changes of +16.44% and +5.91%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 41.34. Its industry sports an average Forward P/E of 29.3, so one might conclude that Synopsys is trading at a premium comparatively.
Also, we should mention that SNPS has a PEG ratio of 2.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.4 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.