U.S. Markets closed

Synaptics (SYNA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Synaptics (SYNA) closed at $66.69, marking a -0.27% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.08%.

Heading into today, shares of the maker of touch-screen technology had gained 14.29% over the past month, outpacing the Computer and Technology sector's gain of 4.7% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from SYNA as it approaches its next earnings release. On that day, SYNA is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 7.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $354.44 million, down 16.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4 per share and revenue of $1.29 billion. These totals would mark changes of 0% and -12.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SYNA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 past month, the Zacks Consensus EPS estimate remained stagnant. SYNA is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note SYNA's current valuation metrics, including its Forward P/E ratio of 16.74. Its industry sports an average Forward P/E of 24.28, so we one might conclude that SYNA is trading at a discount comparatively.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Synaptics Incorporated (SYNA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.