Synopsys (SNPS) Stock Falls Amid Market Uptick: What Investors Need to Know

Company Overview - Synopsys, a software maker for chip testing and development, has seen its shares increase by 6.82% over the past month, underperforming the Computer and Technology sector's gain of 8.61% but outperforming the S&P 500's gain of 4.34% during the same period [2] - The company's current stock price is $607.94, reflecting a decrease of 1.23% from the previous day [7] Financial Performance - For the fiscal year, Zacks Consensus Estimates predict earnings of $13.03 per share and revenue of $6.19 billion, representing increases of 16.44% and 5.91% respectively from the previous year [3] - The upcoming earnings report is projected to show an EPS of $3.26, indicating a 13.19% increase year-over-year, with quarterly revenue expected to reach $1.53 billion, up 2.55% from the same quarter last year [8] Valuation Metrics - Synopsys is currently trading at a Forward P/E ratio of 47.23, which is a premium compared to the industry average Forward P/E of 30.58 [5] - The company has a PEG ratio of 2.94, higher than the industry average PEG ratio of 2.56 [11] Industry Context - The Computer - Software industry, which includes Synopsys, has a Zacks Industry Rank of 155, placing it in the bottom 39% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [12] Analyst Sentiment - Recent changes to analyst estimates for Synopsys indicate a positive outlook for the company's business trends, with no changes in the Zacks Consensus EPS estimate over the past month [9][10] - Synopsys currently holds a Zacks Rank of 3 (Hold), reflecting a neutral sentiment among analysts [10]