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Synopsys (SNPS) ended the recent trading session at $501.06, demonstrating a +1.49% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw an increase of 1.24%.
The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is predicted to post an EPS of $3.44, indicating a 3.37% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.45 billion, down 11.9% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.91 per share and a revenue of $6.77 billion, signifying shifts of +12.95% and +8.04%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.52% lower within the past month. Synopsys is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 33.12 right now. This indicates a premium in contrast to its industry's Forward P/E of 32.71.
It is also worth noting that SNPS currently has a PEG ratio of 2.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 3.24 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.