Is Synopsys Stock a Buy, Sell or Hold at a P/E Multiple of 37.76X?

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Synopsys Inc. SNPS has long been a respected name in the electronic design automation (EDA) sector, providing essential tools and services to semiconductor design and manufacturing companies. However,...

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However,...</p>\n\n<a href=\"https://finance.yahoo.com/news/synopsys-stock-buy-sell-hold-131100565.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Synopsys Stock a Buy, Sell or Hold at a P/E Multiple of 37.76X?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Synopsys Stock a Buy, Sell or Hold at a P/E Multiple of 37.76X?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-15 21:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/synopsys-stock-buy-sell-hold-131100565.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Synopsys Inc. SNPS has long been a respected name in the electronic design automation (EDA) sector, providing essential tools and services to semiconductor design and manufacturing companies. However,...</p>\n\n<a href=\"https://finance.yahoo.com/news/synopsys-stock-buy-sell-hold-131100565.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0061474960.USD","symbol_name":"天利环球焦点基金AU Acc","start_time":0,"source_url":"https://finance.yahoo.com/news/synopsys-stock-buy-sell-hold-131100565.html","article_id":"2483377407","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/_UZhnrWxZJ1XiwdkcazjcA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/5dcd790012cf43a97b1b8987189f433e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483377407","pubTimestamp":1731676260,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Synopsys Inc. SNPS has long been a respected name in the electronic design automation  sector, providing essential tools and services to semiconductor design and manufacturing companies. However, with a forward 12-month price-to-earnings (P/E) ratio of 36.76 — significantly above the Zacks Computer - Software industry average of 33.22 — concerns are rising about whether Synopsys' premium valuation is justified in the current market.One of the main red flags for investors is Synopsys' underperformance in 2024. Year to date, SNPS shares have risen only 6.5%, lagging the Technology Select Sector SPDR Fund XLK ETF, which is up 21.8%, and the S&P 500, which has gained 25.9%.Arm Holdings also poses a serious threat with its dominant position in chip architecture licensing. As the adoption of Arm-based designs accelerates across sectors such as mobile, IoT and data centers, Synopsys may face difficulties penetrating certain markets. Arm’s efforts to develop proprietary tools and optimize chip","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0061474960.USD":"天利环球焦点基金AU Acc","LU2720916845.USD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (USD) ACC","BK4550":"红杉资本持仓","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","LU1923622291.USD":"Natixis Thematics Safety R/A USD","XLK":"高科技指数ETF-SPDR","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","LU0728928796.USD":"abrdn SICAV I - GLOBAL SMALL&MID-CAP SDG HORIZONS EQUITY \"A\" (USD) ACC","LU1989764748.USD":"东方汇理环球颠覆性机遇A2 Acc","LU0109392836.USD":"富兰克林科技股A","LU2063271972.USD":"富兰克林创新领域基金","LU2355687059.USD":"NORDEA 1 GLOBAL IMPACT  \"BP\" (USD) ACC","SNPS":"新思科技","LU0097036916.USD":"贝莱德美国增长A2 USD","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0323239441.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AC\" ACC","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","FDN":"First Trust Dow Jones Internet I","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0444971666.USD":"天利全球科技基金","CDNS":"铿腾电子","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4023":"应用软件","LU1642822529.SGD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"A\" (SGD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU1978683503.SGD":"Blackrock Sustainable Energy A2 SGD-H","BK4585":"ETF&股票定投概念","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","BK4567":"ESG概念","LU0323240290.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AD\" INC","LU1815336760.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"AUP\" (USD) INC","LU2125909247.SGD":"Natixis Thematics Meta H-R/A SGD","LU0957808578.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"ZU\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","LU2250418816.HKD":"BGF WORLD TECHNOLOGY \"A\" (HKD) ACC","LU1821325948.USD":"NINETY ONE GSF GLOBAL MACRO ALLOCATION \"A\" (USD) ACC","BK4588":"碎股","ARM":"ARM Holdings Ltd","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","LU2360106780.USD":"BGF WORLD TECHNOLOGY \"A4\" (USD) INC","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC"},"translate_title":"Synopsys股票是以37.76倍的市盈率买入、卖出还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XLK":1,"SNPS":1,"ARM":1,"CDNS":1,"FDN":0.63},"content_text":"Synopsys Inc. SNPS has long been a respected name in the electronic design automation (EDA) sector, providing essential tools and services to semiconductor design and manufacturing companies. However, with a forward 12-month price-to-earnings (P/E) ratio of 36.76 — significantly above the Zacks Computer - Software industry average of 33.22 — concerns are rising about whether Synopsys' premium valuation is justified in the current market.\nImage Source: Zacks Investment Research\nSynopsys’ Underwhelming Year-to-Date Performance\nOne of the main red flags for investors is Synopsys' underperformance in 2024. Year to date, SNPS shares have risen only 6.5%, lagging the Technology Select Sector SPDR Fund XLK ETF, which is up 21.8%, and the S&P 500, which has gained 25.9%.\nThe contrast is even more striking compared to top competitors like Cadence Design Systems CDNS and Arm Holdings ARM, which have surged 81.2% and 11.1%, respectively. This relative weakness suggests that Synopsys may not be keeping pace with broader market trends or its peers in the EDA space.\nYTD Price Return Performance\nImage Source: Zacks Investment Research\nSlowing Growth in Synopsys’ Core Design Automation Segment\nThe most concerning issue for Synopsys is the evident slowdown in its core Design Automation segment. In the third quarter of fiscal 2024, the segment's revenues increased by just 6% year over year to $1.06 billion. While positive, this growth rate falls short of the double-digit expansion seen in previous years. This deceleration is troubling because Synopsys' EDA tools are crucial to semiconductor design, and any slowdown in this segment could indicate deeper issues with the company’s ability to maintain its competitive edge.\nThe slowdown in this critical segment raises concerns because Synopsys' Electronic Design Automation tools are fundamental to the semiconductor design process. Any deceleration in this area could signal challenges in maintaining the company's competitive edge. The decline can be attributed, in part, to economic uncertainties, as semiconductor companies cut on research and development spending due to fears of a potential recession.\nImage Source: Synopsys\nRising Competitive Pressure for Synopsys\nIntensifying competition is another significant challenge for Synopsys. Cadence Design Systems, a key rival in the EDA market, has been making aggressive moves to expand its product portfolio. Cadence’s focus on AI-driven and high-performance computing applications positions it well to capture market share, putting pressure on Synopsys to step up its innovation and potentially reduce its pricing to remain competitive.\nArm Holdings also poses a serious threat with its dominant position in chip architecture licensing. As the adoption of Arm-based designs accelerates across sectors such as mobile, IoT and data centers, Synopsys may face difficulties penetrating certain markets. Arm’s efforts to develop proprietary tools and optimize chip development for its customers could marginalize Synopsys’ offerings, limiting future revenue opportunities.\nThe combined effect of increased competition from Cadence and Arm puts pressure on Synopsys to boost research and development spending and pursue strategic partnerships. While these efforts are necessary to maintain relevance, they come at the cost of higher operational expenses and narrower profit margins.\nConclusion: Sell SNPS Stock for Now\nGiven the slowing growth in its core Design Automation segment, rising competitive pressures and an above-average P/E ratio, Synopsys’ outlook appears uncertain. While the company has a solid position in the EDA market, its current valuation and mounting challenges make it difficult to justify holding the stock at this time. Investors may find better opportunities by reallocating capital to other tech stocks with stronger growth momentum and more attractive valuations. For now, selling Synopsys stock seems to be the prudent choice. The stock currently carries a Zacks Rank #4 (Sell).\nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report\nSynopsys, Inc. (SNPS) : Free Stock Analysis Report\nCadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report\nTechnology Select Sector SPDR ETF (XLK): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483377407"}