Synopsys (SNPS) closed the latest trading day at $525.48, indicating a -0.17% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.28%.

Shares of the maker of software used to test and develop chips have appreciated by 9.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.

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 February 26, 2025. It is anticipated that the company will report an EPS of $2.81, marking a 21.07% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.45 billion, indicating a 11.9% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $14.90 per share and a revenue of $6.77 billion, demonstrating changes of +12.88% and +8.04%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Synopsys is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Synopsys is currently being traded at a Forward P/E ratio of 35.33. This indicates a premium in contrast to its industry's Forward P/E of 31.41.

One should further note that SNPS currently holds a PEG ratio of 2.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.31 as trading concluded yesterday.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 135, placing it within the bottom 47% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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