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Has Cadence Design Systems (CDNS) Outpaced Other Computer and Technology Stocks This Year?

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Investors focused on the Computer and Technology space have likely heard of Cadence Design Systems (CDNS - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Cadence Design Systems is a member of our Computer and Technology group, which includes 615 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CDNS is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CDNS's full-year earnings has moved 7.45% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CDNS has returned 59.66% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 32.90% on a year-to-date basis. This means that Cadence Design Systems is outperforming the sector as a whole this year.

Breaking things down more, CDNS is a member of the Computer - Software industry, which includes 41 individual companies and currently sits at #189 in the Zacks Industry Rank. Stocks in this group have gained about 32.06% so far this year, so CDNS is performing better this group in terms of year-to-date returns.

CDNS will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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