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The most recent trading session ended with Synopsys (SNPS) standing at $421.88, reflecting a +0.16% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.79%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.64%.
Heading into today, shares of the maker of software used to test and develop chips had lost 5.61% over the past month, lagging the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.
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 $3.39, reflecting a 13% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.6 billion, showing a 10.18% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.88 per share and a revenue of $6.77 billion, indicating changes of +12.73% and +8.05%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Synopsys. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been no change in the Zacks Consensus EPS estimate. Synopsys is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Synopsys currently has a Forward P/E ratio of 28.31. This represents a premium compared to its industry's average Forward P/E of 24.06.
Investors should also note that SNPS has a PEG ratio of 2.12 right now. 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 industry had an average PEG ratio of 2.09 as trading concluded yesterday.