Core Viewpoint - Synopsys is experiencing a decline in stock performance compared to the broader market, with upcoming earnings expected to show a significant drop in EPS while revenue is projected to increase substantially [1][2]. Group 1: Stock Performance - Synopsys shares fell by 1.29% to $395.60, underperforming the S&P 500's gain of 0.21% [1] - Over the past month, Synopsys has lost 10.54%, while the Computer and Technology sector gained 6.68% and the S&P 500 gained 4.36% [1] Group 2: Earnings Expectations - The upcoming earnings report is scheduled for December 10, 2025, with an expected EPS of $2.79, reflecting a 17.94% decrease from the same quarter last year [2] - Revenue is anticipated to be $2.25 billion, indicating a 37.59% increase compared to the same quarter last year [2] Group 3: Full Year Projections - For the full year, earnings are projected at $12.83 per share, representing a -2.8% change from the prior year, while revenue is expected to remain flat at $7.05 billion [3] Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for Synopsys are crucial, as positive revisions are seen as a favorable sign for business outlook [3][4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Synopsys at 3 (Hold) [5] Group 5: Valuation Metrics - Synopsys has a Forward P/E ratio of 28.53, which is higher than the industry average of 24.64, suggesting it is trading at a premium [6] - The company has a PEG ratio of 2.51, compared to the industry average of 1.87, indicating a higher valuation relative to expected earnings growth [7] Group 6: Industry Context - The Computer - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 76, placing it in the top 31% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the importance of industry strength in stock performance [8]