Today Synopsys (SNPS) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Synopsys ( SNPS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Synopsys as such a stock due to the following factors:

  • SNPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • SNPS has traded 322,245 shares today.
  • SNPS is trading at a new lifetime high.

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More details on SNPS:

Synopsys, Inc. provides core electronic design automation (EDA) solutions primarily in the United States, Europe, Japan, and the rest of Asia Pacific. SNPS has a PE ratio of 26.7. Currently there are 6 analysts that rate Synopsys a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Synopsys has been 539,000 shares per day over the past 30 days. Synopsys has a market cap of $5.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.64 and a short float of 0.7% with 2.62 days to cover. Shares are up 17.5% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Synopsys as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SNPS's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SNPS's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SYNOPSYS INC's earnings per share declined by 34.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, SYNOPSYS INC reported lower earnings of $1.22 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($2.43 versus $1.22).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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