Synopsys (SNPS) Gains As Market Dips: What You Should Know
Synopsys (SNPS) closed the latest trading day at $559.14, indicating a +1.28% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.32% for the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.2%.
Shares of the maker of software used to test and develop chips have appreciated by 13.87% over the course of the past month, outperforming the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 21, 2024. It is anticipated that the company will report an EPS of $3.43, marking a 30.92% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.65 billion, indicating a 20.87% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.41 per share and a revenue of $6.61 billion, indicating changes of +19.84% and +13.1%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 has shifted 0.02% downward. As of now, Synopsys holds a Zacks Rank of #3 (Hold).
In terms of valuation, Synopsys is currently trading at a Forward P/E ratio of 41.18. This expresses a premium compared to the average Forward P/E of 32.2 of its industry.
Meanwhile, SNPS's PEG ratio is currently 2.41. 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 Computer - Software was holding an average PEG ratio of 2.4 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
