Synopsys (SNPS) Laps the Stock Market: Here's Why

In the latest trading session, Synopsys (SNPS) closed at $523.79, marking a +0.58% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.39%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.6%.Shares of the maker of software used to test and develop chips witnessed a gain of 2.71% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.59% and the S&P 500's gain of 1.06%.Analysts and investors alike will be keeping a close eye on the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to go public on December 4, 2024. The company is expected to report EPS of $3.29, up 3.79% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.63 billion, indicating a 2.07% upward movement from the same quarter last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. The Zacks Consensus EPS estimate has moved 0.43% lower within the past month. Right now, Synopsys possesses a Zacks Rank of #4 (Sell).With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 35.15. This valuation marks a premium compared to its industry's average Forward P/E of 30.11.We can additionally observe that SNPS currently boasts a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software was holding an average PEG ratio of 2.56 at yesterday's closing price.The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow SNPS in the coming trading sessions, be sure to utilize 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