Synopsys Stock Buy Hold or Sell Recommendation

SNPS Stock  USD 573.35  10.97  1.88%   
Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding Synopsys is 'Strong Hold'. Macroaxis provides Synopsys buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Synopsys positions. The advice algorithm takes into account all of Synopsys' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Synopsys' buy or sell advice are summarized below:
Real Value
520.93
Target Price
483.61
Hype Value
572.84
Market Value
573.35
Naive Value
584.68
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Synopsys given historical horizon and risk tolerance towards Synopsys. When Macroaxis issues a 'buy' or 'sell' recommendation for Synopsys, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Synopsys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Synopsys Stock please use our How to Invest in Synopsys guide.
In addition, we conduct extensive research on individual companies such as Synopsys and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Synopsys. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

Execute Synopsys Buy or Sell Advice

The Synopsys recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Synopsys. Macroaxis does not own or have any residual interests in Synopsys or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Synopsys' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SynopsysBuy Synopsys
Strong Hold

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Synopsys has a Risk Adjusted Performance of 0.0225, Jensen Alpha of (0.13), Total Risk Alpha of (0.46), Sortino Ratio of (0.04) and Treynor Ratio of 0.0348
Macroaxis provides recommendation on Synopsys to complement and cross-verify current analyst consensus on Synopsys. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Synopsys is not overpriced, please validate all Synopsys fundamentals, including its debt to equity, and the relationship between the gross profit and price to earnings to growth . Given that Synopsys has a price to earning of 50.25 X, we advise you to double-check Synopsys market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Synopsys Trading Alerts and Improvement Suggestions

Synopsys has a strong financial position based on the latest SEC filings
Over 94.0% of the company shares are owned by institutional investors
Latest headline from investorplace.com: The 3 Best Tech Stocks to Buy in Q2 2024

Synopsys Returns Distribution Density

The distribution of Synopsys' historical returns is an attempt to chart the uncertainty of Synopsys' future price movements. The chart of the probability distribution of Synopsys daily returns describes the distribution of returns around its average expected value. We use Synopsys price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Synopsys returns is essential to provide solid investment advice for Synopsys.
Mean Return
0.06
Value At Risk
-3.1
Potential Upside
4.30
Standard Deviation
2.29
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Synopsys historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Synopsys Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Synopsys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Synopsys backward and forwards among themselves. Synopsys' institutional investor refers to the entity that pools money to purchase Synopsys' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Nuveen Asset Management, Llc2023-12-31
2.5 M
Norges Bank2023-12-31
2.5 M
Ameriprise Financial Inc2023-12-31
1.8 M
Amvescap Plc.2023-12-31
1.8 M
Morgan Stanley - Brokerage Accounts2023-12-31
1.7 M
Northern Trust Corp2023-12-31
1.6 M
Legal & General Group Plc2023-12-31
1.4 M
Amundi2023-12-31
1.3 M
Alliancebernstein L.p.2023-12-31
1.3 M
Vanguard Group Inc2023-12-31
13.6 M
Blackrock Inc2023-12-31
11.8 M
Note, although Synopsys' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Synopsys Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash507.4M197.2M(15.3M)21.3M24.5M44.4M
Free Cash Flow832.6M1.4B1.6B1.5B1.7B1.8B
Depreciation210.0M203.7M228.4M247.1M284.2M298.4M
Other Non Cash Items168.4M184.6M169.3M213.1M245.1M257.3M
Capital Expenditures158.8M95.7M139.1M191.8M220.6M231.6M
Net Income664.3M757.5M978.4M1.2B1.4B1.5B
End Period Cash Flow1.2B1.4B1.4B1.4B1.7B1.7B
Change To Netincome84.1M163.4M336.6M512.2M589.0M618.5M
Change To Inventory(55.0M)(48.0M)1.3M(123.8M)(111.4M)(105.8M)
Investments(611K)(156.5M)(572.6M)(482.1M)(433.9M)(412.2M)
Change Receivables(8.6M)(236.8M)201.7M(251.4M)(226.3M)(214.9M)
Net Borrowings(331.2M)(12.4M)(28.1M)(76.8M)(69.2M)(65.7M)

Synopsys Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Synopsys or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Synopsys' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Synopsys stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.13
β
Beta against NYSE Composite1.48
σ
Overall volatility
2.22
Ir
Information ratio -0.03

Synopsys Volatility Alert

Synopsys currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Synopsys' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Synopsys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Synopsys Implied Volatility

Synopsys' implied volatility exposes the market's sentiment of Synopsys stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Synopsys' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Synopsys stock will not fluctuate a lot when Synopsys' options are near their expiration.

Synopsys Fundamentals Vs Peers

Comparing Synopsys' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Synopsys' direct or indirect competition across all of the common fundamentals between Synopsys and the related equities. This way, we can detect undervalued stocks with similar characteristics as Synopsys or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Synopsys' fundamental indicators could also be used in its relative valuation, which is a method of valuing Synopsys by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Synopsys to competition
FundamentalsSynopsysPeer Average
Return On Equity0.23-0.31
Return On Asset0.0875-0.14
Profit Margin0.23 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation86.86 B16.62 B
Shares Outstanding152.54 M571.82 M
Shares Owned By Insiders0.43 %10.09 %
Shares Owned By Institutions94.30 %39.21 %
Number Of Shares Shorted3.18 M4.71 M
Price To Earning50.25 X28.72 X
Price To Book13.11 X9.51 X
Price To Sales14.27 X11.42 X
Revenue5.84 B9.43 B
Gross Profit4.08 B27.38 B
EBITDA1.67 B3.9 B
Net Income1.22 B570.98 M
Cash And Equivalents1.53 B2.7 B
Cash Per Share10.01 X5.01 X
Total Debt687.8 M5.32 B
Debt To Equity0.12 %48.70 %
Current Ratio1.14 X2.16 X
Book Value Per Share43.73 X1.93 K
Cash Flow From Operations1.7 B971.22 M
Short Ratio2.66 X4.00 X
Earnings Per Share9.06 X3.12 X
Price To Earnings To Growth2.67 X4.89 X
Target Price635.69
Number Of Employees20.3 K18.84 K
Beta1.06-0.15
Market Capitalization87.46 B19.03 B
Total Asset10.33 B29.47 B
Retained Earnings6.74 B9.33 B
Working Capital445.17 M1.48 B
Note: Exercise or conversion by Roy Vallee of 6666 shares of Synopsys subject to Rule 16b-3 [view details]

Synopsys Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Synopsys . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Synopsys Buy or Sell Advice

When is the right time to buy or sell Synopsys? Buying financial instruments such as Synopsys Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total656.4M687.8M791.0M830.5M
Total Assets9.4B10.3B11.9B12.5B

Use Investing Ideas to Build Portfolios

In addition to having Synopsys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Insurance Providers Thematic Idea Now

Insurance Providers
Insurance Providers Theme
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Providers Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Synopsys is a strong investment it is important to analyze Synopsys' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Synopsys' future performance. For an informed investment choice regarding Synopsys Stock, refer to the following important reports:
Check out Synopsys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Synopsys Stock please use our How to Invest in Synopsys guide.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Complementary Tools for Synopsys Stock analysis

When running Synopsys' price analysis, check to measure Synopsys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Synopsys is operating at the current time. Most of Synopsys' value examination focuses on studying past and present price action to predict the probability of Synopsys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Synopsys' price. Additionally, you may evaluate how the addition of Synopsys to your portfolios can decrease your overall portfolio volatility.
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Money Managers
Screen money managers from public funds and ETFs managed around the world
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Transaction History
View history of all your transactions and understand their impact on performance
Is Synopsys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Synopsys. If investors know Synopsys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Synopsys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.651
Earnings Share
9.06
Revenue Per Share
40.3
Quarterly Revenue Growth
0.211
Return On Assets
0.0875
The market value of Synopsys is measured differently than its book value, which is the value of Synopsys that is recorded on the company's balance sheet. Investors also form their own opinion of Synopsys' value that differs from its market value or its book value, called intrinsic value, which is Synopsys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Synopsys' market value can be influenced by many factors that don't directly affect Synopsys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Synopsys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Synopsys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Synopsys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.