Synopsys (SNPS) Stock Sinks As Market Gains: What You Should Know

Synopsys (SNPS) closed the most recent trading day at $601.55, moving -1.33% from the previous trading session. This change lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.24%. Shares of the maker of software used to test and develop chips have appreciated by 22.99% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.84%, and the S&P 500's gain of 4.61%.The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. On that day, Synopsys is projected to report earnings of $3.84 per share, which would represent year-over-year growth of 11.95%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.77 billion, indicating a 15.9% increase compared to the same quarter of the previous year. SNPS's full-year Zacks Consensus Estimates are calling for earnings of $15.09 per share and revenue of $6.77 billion. These results would represent year-over-year changes of +14.32% and +8.03%, respectively. Investors might also notice recent changes to analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Synopsys presently features a Zacks Rank of #3 (Hold). Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 40.4. This expresses a premium compared to the average Forward P/E of 25.82 of its industry. It is also worth noting that SNPS currently has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SNPS's industry had an average PEG ratio of 2.32 as of yesterday's close. The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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