Synopsys (SNPS) closed the most recent trading day at $127.29, moving +0.46% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the maker of software used to test and develop chips had lost 6.66% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 lost 5.58%.
Investors will be hoping for strength from SNPS as it approaches its next earnings release, which is expected to be August 21, 2019. On that day, SNPS is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 15.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $829.52 million, up 6.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.36 per share and revenue of $3.33 billion, which would represent changes of +11.51% and +6.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SNPS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SNPS is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, SNPS is holding a Forward P/E ratio of 29.08. For comparison, its industry has an average Forward P/E of 29.08, which means SNPS is trading at a no noticeable deviation to the group.
It is also worth noting that SNPS currently has a PEG ratio of 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 34% 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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