Eye Outliers Like Synopsys Early with Money Flows

SNPS develops and sells electronic design automation software used by engineers to design and test integrated circuits, along with offering semiconductor intellectual property products. In its second-quarter fiscal 2025 earnings report, the company reported over $1.6 billion in revenue (up from $1.46 billion a year ago), per-share earnings of $2.24 (up from $1.92 a year prior), and offered confident guidance for the year.

It’s no wonder SNPS shares are up 26% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Inflows Going to Synopsys

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 had strong sales and earnings growth:

• 3-year sales growth rate (+13.6%)
• 3-year EPS growth rate (+46.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +11.3%.

Now it makes sense why the stock has been generating Big Money interest. SNPS has a track record of strong financial performance.

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

Synopsys has been a top-rated stock at MoneyFlows for years. 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 garnered 120 outlier inflow signals since 1993 and is up 5,202% since its first appearance on the rare Outlier 20 report. The blue bars below show when SNPS was a top pick in the last decade, having gained 1,118% in that time…Big Money loves it:

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 action 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.

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