Synopsys Surges 12.12% as Stock Climbs to 144th in Trading Volume Outperforming S&P 500 and Nasdaq

Synopsys (SNPS) rose 1.57% on August 12, closing at $625.80, outperforming the S&P 500’s 1.14% gain and the Nasdaq’s 1.39% rise. The stock has surged 12.12% over the past month, exceeding its sector’s 5.15% increase. With a daily trading volume of $0.73 billion, SNPS ranked 144th in market activity. The company is set to report Q3 earnings on September 9, 2025, with analysts forecasting an EPS of $3.84 (11.95% year-over-year growth) and revenue of $1.77 billion (15.9% YoY rise). Full-year estimates project earnings of $15.09 per share and revenue of $6.77 billion, reflecting 14.32% and 8.03% growth, respectively.

Valuation metrics highlight SNPS’s premium positioning. The stock trades at a forward P/E of 40.83, above its industry average of 23.29, and a PEG ratio of 2.92, higher than the sector’s 2.02. Despite a Zacks Rank of #4 (Sell), the company’s industry holds a Zacks Industry Rank of 91, placing it in the top 37% of 250+ sectors. Analyst revisions over the past month show a 0.03% decline in EPS estimates, signaling cautious near-term expectations.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,340 from 2022 to the present. However, it faced a maximum drawdown of -15.3% on October 27, 2022, underscoring the strategy’s volatility despite its potential for gains.