Synopsys (SNPS) Stock: Buy, Sell, or Hold?
SNPS - Synopsys Inc
$422.48
-28.71 (-6.36%)
âŧ
5d:
-9.75%
30d:
+2.28%
90d:
+13.12%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Dec 09, 2026
Smart Money Accumulation
Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →
Signal fired Oct 15, 2026 at $468.11 · last confirmed Oct 21, 2026
Strength: 7.8/10
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: SNPS is fairly priced but lacks strong directional signals. At -5.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: SNPS is fairly priced but lacks strong directional signals. At -5.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$887.43
Based on 13.9% avg growth
INTRINSIC VALUE TODAY
$551.02
23.3% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SNPS is currently trading at $422.48, which is considered slightly low relative to its 30-day fair value range of $400.37 to $489.02. From a valuation perspective, the stock is trading at a discount (Forward PE: 22.6) compared to its historical average (26.5). Remarkably, the market is currently pricing in an annual earnings decline of 5.3% over the next few years. This pessimistic expectation contrasts with the company's recent 89.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SNPS is showing sideways momentum. The price is currently testing key support at $422.10. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 6.4% recently.
Market Sentiment: SNPS scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $586.95 (+38.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SNPS is showing sideways momentum. The price is currently testing key support at $422.10. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 6.4% recently.
Market Sentiment: SNPS scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $586.95 (+38.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$400.37 -
$489.02
Company Quality Score
40/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
52.4%
Protect Your Profits
Holding SNPS? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (15/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-6.4%)
- BULLISH: Trading 38.9% below Wall St target ($586.95)
- WARNING: Composite score 40/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$400.37 -
$489.02
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$422.10
Resistance Level
$512.49
Current Trend
Sideways
Technical data as of
Oct 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
22.55
Wall Street Target
$586.95
(+38.9%)
Revenue Growth (YoY)
42.4%
Earnings Growth (YoY)
89.3%
Profit Margin
11.4%
Valuation Discount vs History
-5.3% cheaper
PE vs Historical
22.6 vs 26.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.3%
(market-implied from PE analysis)
1-Year Target
$400.09
(-5%)
2-Year Target
$378.88
(-10%)
3-Year Target
$358.80
(-15%)
3-Yr Target (if PE normalizes)
(PE: 23â27)
$421.60
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.6, Growth: 23.7%)
$800.28
(+89%)
Base:
(SPY PE: 19.9, Growth: 23.7%)
$704.73
(+67%)
Bear:
(PE: 16.9, Growth: 23.7%)
$599.02
(+42%)
đ
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (23x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Forward PE: 23.26 | Forward EPS (Implied): $18.17
Bull Case
$510.14
(+21%)
Analyst growth 15.0%, PE expands to 24.4
Base Case
$422.48
(0%)
Market implied 0.0%, PE stable at 23.3
Bear Case
$323.20
(-24%)
Severe decline -15.0%, PE contracts to 20.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 22.6 to 26.5
Stabilization Target:
$496.42
(+17.5%)
PE Expansion Potential:
+17.5%
Share & Embed Analysis
Last updated: October 22, 2026 11:55 PM ET
Data refreshes hourly during market hours. Next update: 12:55 AM
Data refreshes hourly during market hours. Next update: 12:55 AM
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Technical Signals Check
Is SNPS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced SNPS Option Strategies
Professional options setups generated by AI based on today's SNPS price and gamma walls.
