Synopsys (SNPS) Gains But Lags Market: What You Should Know

In the latest market close, Synopsys (SNPS) reached $459.36, with a +0.08% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, added 1.52%.Prior to today's trading, shares of the maker of software used to test and develop chips had gained 4.67% over the past month. This has outpaced the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7% in that time.Market participants will be closely following the financial results of Synopsys in its upcoming release. The company's upcoming EPS is projected at $3.39, signifying a 13% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.6 billion, indicating a 10.1% upward movement from the same quarter last year.For the full year, the Zacks Consensus Estimates project earnings of $14.88 per share and a revenue of $6.77 billion, demonstrating changes of +12.73% and +7.98%, respectively, from the preceding year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Synopsys is currently sporting a Zacks Rank of #3 (Hold).With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 30.86. For comparison, its industry has an average Forward P/E of 26.97, which means Synopsys is trading at a premium to the group.Meanwhile, SNPS's PEG ratio is currently 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.27.The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. 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 UpWant 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