Synopsys (SNPS) Ascends While Market Falls: Some Facts to Note

Synopsys (SNPS) closed at $516.38 in the latest trading session, marking a +1.61% move from the prior day. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.06%. The maker of software used to test and develop chips's stock has climbed by 10.93% in the past month, exceeding the Computer and Technology sector's gain of 2.88% and the S&P 500's gain of 1.99%.Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. In that report, analysts expect Synopsys to post earnings of $3.57 per share. This would mark year-over-year growth of 17.82%. Simultaneously, our latest consensus estimate expects the revenue to be $2.39 billion, showing a 64.28% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $14.39 per share and a revenue of $9.63 billion, demonstrating changes of +11.46% and +36.45%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Synopsys is currently sporting a Zacks Rank of #3 (Hold). From a valuation perspective, Synopsys is currently exchanging hands at a Forward P/E ratio of 35.31. This valuation marks a premium compared to its industry average Forward P/E of 22.22. We can additionally observe that SNPS currently boasts a PEG ratio of 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 1.72 at the close of the market yesterday. The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synopsys, Inc. (SNPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks