The most recent trading session ended with Synopsys (SNPS) standing at $522.53, reflecting a -1.09% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.41%.

The maker of software used to test and develop chips's shares have seen an increase of 2.42% over the last month, not keeping up with the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 4.88%.

The investment community will be closely monitoring the performance of Synopsys in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. The company's upcoming EPS is projected at $2.81, signifying a 21.07% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.45 billion, down 11.9% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.90 per share and a revenue of $6.77 billion, indicating changes of +12.88% and +8.04%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Synopsys. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Synopsys boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Synopsys is at present trading with a Forward P/E ratio of 35.46. This represents a premium compared to its industry's average Forward P/E of 29.82.

One should further note that SNPS currently holds a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.21.

The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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