Are Synopsys Inc. shares ready to rebound after losing 5% last week?
Shares of Synopsys Inc. (NASDAQ: SNPS) has lost 5% over the past week and is currently trading at just under $ 302 per share. Additionally, Synopsys, an electronics design automation company, has seen its shares drop nearly 10% in the past month. However, the company’s recent third quarter 2021 earnings released in late August saw third quarter revenue drop from $ 964 million in the third quarter to $ 20 billion to $ 1.06 billion in the third quarter of 21. However, higher operating expenses and an additional restructuring charge of $ 17 million reduced operating income from $ 210 million to $ 202 million over this period. Combined with a decline in other income and an increase in the effective tax rate, EPS fell to $ 1.30 in Q3 ’21 from $ 1.67 in Q3 ’20.
However, after falling 5% last week, will the Synopsys title continue on its downward trajectory over the next few weeks, or is a resumption of the title imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, Synopsys stock returns average 3.7 (involving a share price increase from $ 302 to $ 313) over the next month (twenty-one trading days) after experiencing a 5% drop from the previous week (five trading days) .
But how would these numbers change if you wanted to hold Synopsys shares for a longer or shorter period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Synopsys Share Price Forecast after a rise or fall. You can test the chances of recovery over different time intervals of a quarter, a month, or even a day. For more details on Synopsys historical returns and the comparison of returns with peers, see Synopsys Return on Shares.
MACHINE LEARNING MOTOR – try it yourself:
If the Synopsys share moves -5% over five trading days, THEN over the next twenty-one trading days, the Synopsys share moves an average of 2.4%, with a decent 63.4% probability of a positive return over this period.
In addition, given a -5% movement for the stock over five trading days, it has historically experienced a excess return 1.5% against the S & P500 over the next 21 trading days, with a high probability of 72.2% percent of a positive excess return.
Some fun scenarios, FAQs and explanation of Synopsys stock movements:
Question 1: Are the price predictions for the Synopsys share higher after a decline?
Reply: Consider two situations,
Case 1: Synopsys stock drops by 5% or more in a week
Case 2: Synopsys share increases by 5% or more in one week
Is the average return on the Synopsys share higher in the next month after Case 1 or Case 2?
Stock Synopsis fares better after case 1, with an expected return of 3.7% over the next month (21 trading days) in case 1 (where the stock has just suffered a loss of 5% during the previous week), against an expected return of 2.4% for case 2. This implies a price forecast of $ 313 in case 1 and a figure of $ 309 in case 2 using the SNPS market price of $ 301.93 on 09/28 / 2021.
In comparison, the S&P 500 has an expected return of 3.1% over the next 21 trading days in case 1, and an average return of only 0.5% for case 2, as detailed in our dashboard. which details the expected return of the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how the Synopsys stock is likely to behave after a specific gain or loss over a period of time.
Question 2: Does patience pay?
Reply: If you buy and hold Synopsys shares, you would expect that over time short-term fluctuations will cancel each other out and the long-term positive trend will favor you – at least if the company is otherwise strong.
All in all, according to data and calculations from the machine learning engine Trefis, patience absolutely pays for most actions!
For the Synopsys share, the returns over the next N days after a -5% change over the last five trading days are detailed in the table below, along with the returns of the S & P500:
You can try the engine out to see what this table looks like for Synopsys after a larger loss in the past week, month, or quarter.
Question 3: What about forecasting the stock price after rising if you wait a while?
Reply: The expected return after a rise is naturally lower than after a fall, as detailed in the previous question. Interestingly, however, if a stock has won in the last few days, you’d better avoid short-term bets for most stocks.
It is powerful enough to test the trend for the Synopsys stock yourself by changing the entries in the charts above.
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