Synopsys Innovation, Earnings Draw Big Money Investors

Now the firm is gaining from the AI boom and looking to add software simulation to its mix with an anticipated acquisition that could close early next year. With growing demand for advanced technologies, SNPS is poised to be a player for years to come.

Despite a dip in share prices around April, the company’s financial performance has Big Money investors keenly interested. SNPS reported 15% year-over-year revenue growth last quarter, hitting $1.46 billion in quarterly revenue. Also, its net income of $292.1 million showed a 7% year-over-year improvement.

It’s no wonder SNPS shares are up 18% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves Synopsys Shares

Institutional volumes reveal plenty. In the last year, SNPS has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in SNPS shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Synopsys.

Synopsys Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, SNPS has strong sales and earnings growth:

• 3-year sales growth rate (+16.7%)
• 3-year earnings growth rate (+22.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +15.7%.

Now it makes sense why the stock has been powering to new heights. SNPS has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Synopsys has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last decade, with more potentially on the horizon. The blue bars below show when SNPS was a top pick…sending shares skyward:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Synopsys Price Prediction

The SNPS rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in SNPS at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.