Synaptics (SYNA) Outpaces Stock Market Gains: What You Should Know

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Synaptics (SYNA) closed at $249.84 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.92%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Heading into today, shares of the maker of touch-screen technology had lost 10.93% over the past month, lagging the Computer and Technology sector’s loss of 5.93% and the S&P 500’s loss of 0.85% in that time.

Investors will be hoping for strength from Synaptics as it approaches its next earnings release. The company is expected to report EPS of $3.12, up 35.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $414.1 million, up 15.8% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.21 per share and revenue of $1.59 billion. These totals would mark changes of +35.71% and +18.61%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Synaptics. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synaptics currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Synaptics has a Forward P/E ratio of 21.89 right now. For comparison, its industry has an average Forward P/E of 22.36, which means Synaptics is trading at a discount to the group.

Also, we should mention that SYNA has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. SYNA’s industry had an average PEG ratio of 1.6 as of yesterday’s close.

The Electronics – Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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