Synaptics (SYNA) Gains As Market Dips: What You Should Know
In the latest trading session, Synaptics (SYNA) closed at $80.91, marking a +0.01% move from the previous day. This change outpaced the S&P 500's 1.63% loss on the day. At the same time, the Dow lost 1.44%, and the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the maker of touch-screen technology had lost 1.47% over the past month, lagging the Computer and Technology sector's gain of 5.81% and the S&P 500's gain of 2.86% in that time.
SYNA will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. On that day, SYNA is projected to report earnings of $1.70 per share, which would represent year-over-year growth of 39.34%. Meanwhile, our latest consensus estimate is calling for revenue of $324.40 million, down 4.56% from the prior-year quarter.
SYNA's full-year Zacks Consensus Estimates are calling for earnings of $6.33 per share and revenue of $1.26 billion. These results would represent year-over-year changes of +6.39% and -5.51%, respectively.
Investors might also notice recent changes to analyst estimates for SYNA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. SYNA currently has a Zacks Rank of #2 (Buy).
In terms of valuation, SYNA is currently trading at a Forward P/E ratio of 12.79. Its industry sports an average Forward P/E of 22.58, so we one might conclude that SYNA is trading at a discount comparatively.
It is also worth noting that SYNA currently has a PEG ratio of 1.28. 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. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SYNA in the coming trading sessions, be sure to utilize Zacks.com.
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