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Here's Why Synopsys (SNPS) Fell More Than Broader Market
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In the latest market close, Synopsys (SNPS - Free Report) reached $489.97, with a -1.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 1.05%.
The the stock of maker of software used to test and develop chips has fallen by 17.86% in the past month, lagging the Computer and Technology sector's loss of 12.91% and the S&P 500's loss of 5.85%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on August 21, 2024. It is anticipated that the company will report an EPS of $3.26, marking a 13.19% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 2.55% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.03 per share and revenue of $6.19 billion, indicating changes of +16.44% and +5.91%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Synopsys is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 38.32. For comparison, its industry has an average Forward P/E of 28.88, which means Synopsys is trading at a premium to the group.
Meanwhile, SNPS's PEG ratio is currently 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.21.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Synopsys (SNPS) Fell More Than Broader Market
In the latest market close, Synopsys (SNPS - Free Report) reached $489.97, with a -1.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 1.05%.
The the stock of maker of software used to test and develop chips has fallen by 17.86% in the past month, lagging the Computer and Technology sector's loss of 12.91% and the S&P 500's loss of 5.85%.
The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on August 21, 2024. It is anticipated that the company will report an EPS of $3.26, marking a 13.19% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 2.55% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.03 per share and revenue of $6.19 billion, indicating changes of +16.44% and +5.91%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Synopsys is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 38.32. For comparison, its industry has an average Forward P/E of 28.88, which means Synopsys is trading at a premium to the group.
Meanwhile, SNPS's PEG ratio is currently 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.21.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.