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Cadence Design Systems (CDNS) Dips More Than Broader Markets: What You Should Know
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $153.72, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 6.84% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. This 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 should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 37.77 right now. Its industry sports an average Forward P/E of 22.92, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 2.13 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.99 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 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems (CDNS) Dips More Than Broader Markets: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $153.72, moving -1.18% from the previous trading session. This move lagged the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 6.84% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. This 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 should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 37.77 right now. Its industry sports an average Forward P/E of 22.92, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 2.13 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.99 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 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.