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Cadence Design Systems (CDNS) Gains But Lags Market: What You Should Know
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $150.55, moving +1.74% from the previous trading session. This move lagged the S&P 500's daily gain of 2.6%. At the same time, the Dow added 2.83%, and the tech-heavy Nasdaq gained 0.04%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 11.52% over the past month, outpacing the Computer and Technology sector's loss of 15.89% and the S&P 500's loss of 12.9% in that time.
Cadence Design Systems will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2022. On that day, Cadence Design Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.88 million, up 15.84% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $3.5 billion. These results would represent year-over-year changes of +25.23% and +17.11%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cadence Design Systems is currently a Zacks Rank #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 35.93. This represents a premium compared to its industry's average Forward P/E of 21.75.
We can also see that CDNS currently has a PEG ratio of 2.03. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cadence Design Systems (CDNS) Gains But Lags Market: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $150.55, moving +1.74% from the previous trading session. This move lagged the S&P 500's daily gain of 2.6%. At the same time, the Dow added 2.83%, and the tech-heavy Nasdaq gained 0.04%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 11.52% over the past month, outpacing the Computer and Technology sector's loss of 15.89% and the S&P 500's loss of 12.9% in that time.
Cadence Design Systems will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2022. On that day, Cadence Design Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.88 million, up 15.84% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $4.12 per share and revenue of $3.5 billion. These results would represent year-over-year changes of +25.23% and +17.11%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cadence Design Systems is currently a Zacks Rank #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 35.93. This represents a premium compared to its industry's average Forward P/E of 21.75.
We can also see that CDNS currently has a PEG ratio of 2.03. 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. Computer - Software stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.