Synopsys (SNPS) closed at $533.30 in the latest trading session, marking a +0.92% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.36% for the day. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.51%.

Shares of the maker of software used to test and develop chips have appreciated by 5.26% over the course of the past month, outperforming the Computer and Technology sector's of 0% and the S&P 500's gain of 2.11%.

The investment community will be paying close attention to the earnings performance of Synopsys in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. On that day, Synopsys is projected to report earnings of $2.81 per share, which would represent a year-over-year decline of 21.07%. Alongside, our most recent consensus estimate is anticipating revenue of $1.45 billion, indicating a 11.9% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.90 per share and revenue of $6.77 billion. These totals would mark changes of +12.88% and +8.04%, respectively, from last year.

Any recent changes to analyst estimates for Synopsys should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Synopsys holds a Zacks Rank of #3 (Hold).

Investors should also note Synopsys's current valuation metrics, including its Forward P/E ratio of 35.46. This represents a premium compared to its industry's average Forward P/E of 31.19.

We can also see that SNPS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.28.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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