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Synopsys (SNPS) closed the latest trading day at $616.01, indicating a +0.32% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.4%.

Shares of the maker of software used to test and develop chips have appreciated by 4.04% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.22% and outperforming the S&P 500's gain of 3.78%.

The upcoming earnings release of Synopsys will be of great interest to investors. The company is forecasted to report an EPS of $3.26, showcasing a 13.19% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 2.55% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.03 per share and a revenue of $6.19 billion, representing changes of +16.44% and +5.91%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Synopsys. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Synopsys is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Synopsys is at present trading with a Forward P/E ratio of 47.12. Its industry sports an average Forward P/E of 30.81, so one might conclude that Synopsys is trading at a premium comparatively.

Meanwhile, SNPS's PEG ratio is currently 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.49.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 41% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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