Synopsys (SNPS) closed at $492.89 in the latest trading session, marking a -1.81% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.54%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 1.63%.
The the stock of maker of software used to test and develop chips has fallen by 1.9% in the past month, lagging the Computer and Technology sector's gain of 0.11% and overreaching the S&P 500's loss of 2.2%.
Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. On that day, Synopsys is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 21.07%. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 11.9% downward movement from the same quarter last year.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Synopsys boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 33.69 right now. This represents a premium compared to its industry's average Forward P/E of 30.41.
It's also important to note that SNPS currently trades at a PEG ratio of 2.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNPS's industry had an average PEG ratio of 2.35 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpSynopsys, Inc. (SNPS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
