Synopsys (SNPS) Gains As Market Dips: What You Should Know
Synopsys (SNPS) closed at $543.18 in the latest trading session, marking a +0.61% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.76%.
Heading into today, shares of the maker of software used to test and develop chips had gained 4.85% over the past month, lagging the Computer and Technology sector's gain of 6.36% and outpacing the S&P 500's gain of 3.36% in that time.
Market participants will be closely following the financial results of Synopsys in its upcoming release. The company plans to announce its earnings on February 21, 2024. The company is predicted to post an EPS of $3.43, indicating a 30.92% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 20.87% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $13.41 per share and a revenue of $6.61 billion, demonstrating changes of +19.84% and +13.1%, respectively, from the preceding 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Synopsys is holding a Forward P/E ratio of 40.27. This expresses a premium compared to the average Forward P/E of 34.55 of its industry.
Also, we should mention that SNPS has a PEG ratio of 2.36. 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 2.39 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
