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Why the Market Dipped But Synopsys (SNPS) Gained Today
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In the latest market close, Synopsys (SNPS - Free Report) reached $501.58, with a +1.28% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.
Coming into today, shares of the maker of software used to test and develop chips had lost 3.91% in the past month. In that same time, the Computer and Technology sector gained 1.65%, while the S&P 500 gained 1.39%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.28, marking a 3.47% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.63 billion, indicating a 2.07% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.12 per share and revenue of $6.13 billion, which would represent changes of +17.25% and +4.93%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 37.76. This represents a premium compared to its industry's average Forward P/E of 29.39.
Also, we should mention that SNPS has a PEG ratio of 2.44. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 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.
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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Why the Market Dipped But Synopsys (SNPS) Gained Today
In the latest market close, Synopsys (SNPS - Free Report) reached $501.58, with a +1.28% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.
Coming into today, shares of the maker of software used to test and develop chips had lost 3.91% in the past month. In that same time, the Computer and Technology sector gained 1.65%, while the S&P 500 gained 1.39%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.28, marking a 3.47% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.63 billion, indicating a 2.07% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.12 per share and revenue of $6.13 billion, which would represent changes of +17.25% and +4.93%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Synopsys is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 37.76. This represents a premium compared to its industry's average Forward P/E of 29.39.
Also, we should mention that SNPS has a PEG ratio of 2.44. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.