Synopsys (SNPS) Suffers a Larger Drop Than the General Market: Key Insights

In the latest market close, Synopsys (SNPS) reached $495.82, with a -0.87% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.Coming into today, shares of the maker of software used to test and develop chips had lost 8.69% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.Market participants will be closely following the financial results of Synopsys in its upcoming release. The company's earnings per share (EPS) are projected to be $3.44, reflecting a 3.37% decrease from the same quarter last year. 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.For the full year, the Zacks Consensus Estimates are projecting earnings of $14.91 per share and revenue of $6.77 billion, which would represent changes of +12.95% and +8.04%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 4.52% lower. Synopsys is holding a Zacks Rank of #3 (Hold) right now.Valuation is also important, so investors should note that Synopsys has a Forward P/E ratio of 33.55 right now. This expresses a premium compared to the average Forward P/E of 31.98 of its industry.One should further note that SNPS currently holds a PEG ratio of 2.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.34.The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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