Synopsys Inc. (SNPS:NSD) Analysts Bullish with Strong Buy, 10 Bullish Signals Detected

STA Research
by: STA Research
Synopsys Inc.

Based on the Synopsys stock forecasts from 7 analysts, the average analyst SNPS stock price target is USD 385.00 over the next 12 months. Synopsys Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Synopsys stock is Bullish, which is based on 10 positive signals and 4 negative signals. At the last closing, SNPS stock price was USD 381.00SNPS stock price has changed by +5.29% over the past week, +66.70% over the past month and +31.09% over the last year.

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. The company offers Fusion Design Platform, Verification Continuum Platform, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. Additionally, the company offers security testing, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Mountain View, California.

 

What we like:

(Bullish Signals)

High market capitalization:

Synopsys stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns:

Synopsys stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The annual returns for Synopsys stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

Synopsys stock price has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

Synopsys stock management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

Synopsys stock price has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

Synopsys stock is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the SNPS analysis and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

SNPS stock forecast has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

SNPS stock forecast has shown that the company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

SNPS stock forecast has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

(Bearish Signals)

Overpriced compared to earnings:

SNPS stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

SNPS stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

SNPS stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis:

SNPS stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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