Synopsys (SNPS) Declines More Than Market: Some Information for Investors

Synopsys (SNPS) ended the recent trading session at $493.97, demonstrating a -1.4% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.47%.The the stock of maker of software used to test and develop chips has fallen by 8.03% in the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. The company is expected to report EPS of $2.81, down 21.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.45 billion, down 11.9% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.90 per share and a revenue of $6.77 billion, indicating changes of +12.88% and +8.04%, respectively, from the former year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is holding a Zacks Rank of #3 (Hold) right now.Looking at valuation, Synopsys is presently trading at a Forward P/E ratio of 33.62. This valuation marks a premium compared to its industry's average Forward P/E of 29.52.One should further note that SNPS currently holds a PEG ratio of 2.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.2 as of yesterday's close.The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 135, positioning it in the bottom 47% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks