Synopsys, Inc. (SNPS) is Attracting Investor Attention: Here is What You Should Know

Earnings Estimates - The consensus earnings estimate for the current fiscal year is $13.03, reflecting a year-over-year change of +16.4%, with a recent adjustment of -1.3% over the last 30 days [2] - For the next fiscal year, the consensus earnings estimate is $14.97, indicating a change of +14.8% from the previous year, with a recent adjustment of -2.1% [10] Revenue Performance - Synopsys reported revenues of $1.45 billion in the last quarter, representing a year-over-year change of +4.3% [4] - The consensus sales estimate for the current quarter is $1.53 billion, indicating a year-over-year change of +2.6%, with estimates for the current and next fiscal years at $6.19 billion and $6.9 billion, reflecting changes of +5.9% and +11.5% respectively [22] Earnings Surprises - Over the last four quarters, Synopsys surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [5] - The last reported revenues of $1.45 billion were a surprise of -3.83% compared to the Zacks Consensus Estimate of $1.51 billion, with an EPS surprise of -0.99% [15] Valuation Metrics - Synopsys is graded F in terms of valuation, indicating it is trading at a premium to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is fairly valued, overvalued, or undervalued [16] Stock Performance and Market Sentiment - Over the past month, shares of Synopsys have returned +1.8%, compared to the Zacks S&P 500 composite's +4% change and the Zacks Computer - Software industry's gain of 4.9% [19] - Synopsys is currently on Zacks.com's list of the most searched stocks, indicating heightened interest that could influence its performance [8] Earnings Estimate Revisions - The company’s future earnings estimates are crucial for determining its fair value, as a rise in earnings estimates typically correlates with an increase in stock price [19] - The Zacks Rank for Synopsys is 3 (Hold), suggesting it may perform in line with the broader market in the near term [20]