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Synopsys (SNPS) Stock Sinks As Market Gains: What You Should Know
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In the latest market close, Synopsys (SNPS - Free Report) reached $556.26, with a -0.94% movement compared to the previous day. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the maker of software used to test and develop chips had gained 4.01% over the past month, lagging the Computer and Technology sector's gain of 4.92% and the S&P 500's gain of 4.37% in that time.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on December 4, 2024. The company's upcoming EPS is projected at $3.29, signifying a 3.79% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, up 2.07% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% decrease. At present, Synopsys boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 37.91. For comparison, its industry has an average Forward P/E of 31.24, which means Synopsys is trading at a premium to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.61.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Synopsys (SNPS) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Synopsys (SNPS - Free Report) reached $556.26, with a -0.94% movement compared to the previous day. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the maker of software used to test and develop chips had gained 4.01% over the past month, lagging the Computer and Technology sector's gain of 4.92% and the S&P 500's gain of 4.37% in that time.
The upcoming earnings release of Synopsys will be of great interest to investors. The company's earnings report is expected on December 4, 2024. The company's upcoming EPS is projected at $3.29, signifying a 3.79% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.63 billion, up 2.07% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% decrease. At present, Synopsys boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 37.91. For comparison, its industry has an average Forward P/E of 31.24, which means Synopsys is trading at a premium to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.61.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.