Synopsys (SNPS) Dips More Than Broader Market: What You Should Know

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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks