Synopsys (SNPS) Dips More Than Broader Market: What You Should Know
In the latest trading session, Synopsys (SNPS) closed at $568.93, marking a -1.11% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.3%.
The the stock of maker of software used to test and develop chips has risen by 16.36% in the past month, leading the Computer and Technology sector's gain of 11.35% and the S&P 500's gain of 5.78%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on February 21, 2024. The company's upcoming EPS is projected at $3.43, signifying a 30.92% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.65 billion, indicating a 20.87% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.41 per share and revenue of $6.61 billion, which would represent changes of +19.84% and +13.1%, respectively, from the prior year.
Investors should also note any recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Synopsys is currently a Zacks Rank #3 (Hold).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 42.91. This denotes a premium relative to the industry's average Forward P/E of 32.6.
Meanwhile, SNPS's PEG ratio is currently 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. The average PEG ratio for the Computer - Software industry stood at 2.5 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
