Synopsys saw its IBD SmartSelect Composite Rating jump to 98 Wednesday out of a best possible 99, up from 94 the day before. The chip design software maker's sales and profits have risen over the past year and Synopsys stock hit an all-time high a month ago.
The revised score means the stock currently tops 98% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Lean How — And When — To Sell Stocks
Synopsys Stock Tops All-Time High, Consolidates
Synopsys makes software that helps chipmakers design and verify new chips, and also sells other integrated circuit design tools.
Currently, Synopsys stock is about 2% above a 573.77 entry from a cup without handle. On Feb. 22 it surged nearly 7% in 36% higher volume than normal to an all-time high 629.38 then consolidated. On Wednesday Synopsys closed at 589.78.
Perfect Earnings Growth Rating
Additionally, Sunnyvale, Calif.-based Synopsys has a perfect 99 EPS Rating, meaning its recent quarterly and annual earnings growth tops 99% of all stocks. In its latest quarter Synopsys reported a 36% surge in earnings to $3.56 per share on a 21% hike in revenue to $1.65 billion.
Compare that to the April 2023-ended quarter when Synopsys reported a 2% rise in earnings to $2.54 a share on a 9% increase in sales to $1.39 billion.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
Synopsys stock holds the No. 2 rank among its peers in the Computer Software-Design industry group. Cadence Design Systems is the top-ranked stock in the group.
