Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Synopsys (SNPS), and highlights the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4][9]. Summary by Sections Brokerage Recommendations for Synopsys - Synopsys has an average brokerage recommendation (ABR) of 1.19, indicating a consensus between Strong Buy and Buy, based on recommendations from 16 brokerage firms [2]. - Out of the 16 recommendations, 14 are Strong Buy and 1 is Buy, which accounts for 87.5% and 6.3% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article notes that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [4]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Zacks Rank as an Alternative Tool - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11]. Current Earnings Estimates for Synopsys - The Zacks Consensus Estimate for Synopsys remains unchanged at $13.23 for the current year, suggesting steady analyst views on the company's earnings prospects [12]. - Due to the unchanged consensus estimate and other factors, Synopsys holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the favorable ABR [13].

Core Viewpoint - Synopsys, Inc. is expected to report strong second-quarter fiscal 2024 results, with anticipated revenues between $1.56 billion and $1.59 billion, reflecting an 8.4% year-over-year growth, and non-GAAP earnings per share projected between $3.09 and $3.14, indicating a 19.3% increase from the previous year [1][3][4]. Revenue Expectations - The Zacks Consensus Estimate for revenues is $1.51 billion, which is lower than the company's guidance [1]. - The expected revenue growth is driven by increasing demand for Synopsys' comprehensive product portfolio, particularly in high-performance cloud computing and advanced solutions for AI, IoT, and 5G [3][4]. Earnings Projections - Non-GAAP earnings per share are projected to be between $3.09 and $3.14, with the Zacks Consensus Estimate at $3.03 per share [1]. - The anticipated earnings growth is attributed to the rising adoption of Synopsys.ai and strategic partnerships, particularly with Intel [5][6]. Market Drivers - The demand for Synopsys' Intellectual Property solutions, such as PCI Express and DDR5 memory, is expected to increase due to the hybrid work environment and the growing applications of AI and cloud technology [3][4]. - Significant growth in the Fusion Compiler, driven by major deals in the 5G and AI markets, is anticipated to be a key contributor to revenue growth [4]. Strategic Partnerships - Synopsys' partnerships with industry leaders like Microsoft and Taiwan Semiconductor Manufacturing Company are likely to enhance the deployment of its cloud solutions, contributing positively to revenue [7][8]. - The collaboration with Intel aims to improve fabrication processes, which is expected to play a crucial role in revenue growth [5]. Competitive Landscape - Despite the positive outlook, Synopsys faces rising competition from companies like Cadence Design Systems, which may pose challenges [9]. - Ongoing macroeconomic challenges and unfavorable currency exchange rates could partially offset the positive impacts of growth factors [9].

In its upcoming report, Synopsys (SNPS) is predicted by Wall Street analysts to post quarterly earnings of $3.03 per share, reflecting an increase of 19.3% compared to the same period last year. Revenues are forecasted to be $1.51 billion, representing a year-over-year increase of 8.4%. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. ...

More than half (54%) of organizations surveyed suffered a software supply chain attack in the past year, according to a new report from Synopsys Software Integrity Group and Ponemon Institute SUNNYVALE, Calif., May 16, 2024 /PRNewswire/ -- The majority of global organizations (54%) suffered a software supply chain attack over the past year, and most are unable to keep up with the growing risk landscape. This is according to "The State of Software Supply Chain Security Risk" report, released today by Synopsy ...

The market expects Synopsys (SNPS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on May 22, 2024, might help the stock move higher if these key numbers are bette ...

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside- audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Synopsys possesses a Zacks Rank of #4 (Sell). In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 42.24. This represents a premium compared to its industry's average Forward P/E of ...

The latest trading session saw Synopsys (SNPS) ending at $549.61, denoting a +0.75% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.1%.Coming into today, shares of the maker of software used to test and develop chips had lost 5.35% in the past month. In that same time, the Computer and Technology sector gained 0.89%, while the S&P 500 lost 0.35 ...

Synopsys, Inc. (SNPS) , a leading provider of electronic design automation software solutions, has agreed to sell its Software Integrity Group business to two private equity firms — Clearlake Capital Group, L.P. and Francisco Partners — for as much as $2.1 billion in cash.Per the agreement, Synopsys will get $1.5 billion upon the close of the transaction, another $125 million over the next five quarters and $475 million in cash payable upon achieving a specified rate of return. The transaction is anticipate ...

Highlights: Transaction will establish the Software Integrity Group as a newly independent, leading application security testing software provider.  The transaction, valued at up to $2.1 billion, is expected to close in the second half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.  Synopsys sharpens focus on accelerating its silicon to systems strategy and advancing its core design automation and design IP businesses. SUNNYVALE, Calif., May 6, 202 ...

Synopsys.ai Full Stack AI-Driven EDA Suite with CPU-specific Optimizations Delivers Unparalleled PPA with Highest Frequency and 10% Lower Power for Industry's Latest Mobile CPU with Generative AI Capabilities Highlights: Synopsys.ai EDA suite augmented with high-performance CPU PPA optimizations delivers highest performance, power, and area optimization for GAA nodes. Collaboration across Synopsys.ai full-stack AI-driven EDA suite on Samsung Foundry's advanced GAA technologies enables ultimate peak perform ...