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Synopsys (SNPS) ended the recent trading session at $515.81, demonstrating a +1.7% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.89%.
The maker of software used to test and develop chips's stock has climbed by 2.58% in the past month, exceeding the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.81, reflecting a 21.07% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.45 billion, down 11.9% from the prior-year quarter.
SNPS's full-year Zacks Consensus Estimates are calling for earnings of $14.90 per share and revenue of $6.77 billion. These results would represent year-over-year changes of +12.88% and +8.04%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 34.04. This represents a premium compared to its industry's average Forward P/E of 30.43.
Meanwhile, SNPS's PEG ratio is currently 2.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.