Synopsys (SNPS) Outperforms Broader Market: What You Need to Know

Core Insights - Synopsys (SNPS) closed at $464.40, reflecting a +1.82% increase from the previous day, outperforming the S&P 500's gain of 0.79% [1] - Over the last month, Synopsys shares have decreased by 6.39%, underperforming the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27% [1] Earnings Performance - Synopsys is expected to report an EPS of $2.79, indicating a 17.94% decline compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $2.25 billion, representing a 37.59% increase from the previous year [2] - Full-year Zacks Consensus Estimates project earnings of $12.83 per share and revenue of $7.05 billion, reflecting year-over-year changes of -2.8% and +12.52%, respectively [3] Analyst Estimates - Recent changes to analyst estimates for Synopsys are crucial as they indicate shifts in near-term business trends [4] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [4] Valuation Metrics - Synopsys has a Forward P/E ratio of 35.54, which is higher than the industry average Forward P/E of 29.24 [7] - The company has a PEG ratio of 3.13, compared to the Computer - Software industry's average PEG ratio of 2.11 [8] Industry Context - The Computer - Software industry is part of the broader Computer and Technology sector, currently holding a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [9] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [9]