The latest trading session saw Synopsys (SNPS) ending at $527.52, denoting no adjustment from its last day's close. This change lagged the S&P 500's 0.02% gain on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.1%.

Coming into today, shares of the maker of software used to test and develop chips had lost 9.72% in the past month. In that same time, the Computer and Technology sector lost 5.13%, while the S&P 500 lost 3.01%.

Investors will be eagerly watching for the performance of Synopsys in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 22, 2024. The company is expected to report EPS of $3.01, up 18.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.52 billion, up 8.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.18 per share and a revenue of $6.49 billion, signifying shifts of +17.78% and +11.07%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Synopsys. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.78% lower. Synopsys is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 40.02. This valuation marks a premium compared to its industry's average Forward P/E of 28.66.

We can also see that SNPS currently has a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SNPS's industry had an average PEG ratio of 2.28 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.



The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Synopsys, Inc. (SNPS):Free Stock Analysis Report

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