The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cadence Design Systems (CDNS - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Cadence Design Systems is one of 603 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CDNS is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CDNS's full-year earnings has moved 16.77% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CDNS has returned 47.38% so far this year. In comparison, Computer and Technology companies have returned an average of 21.20%. This shows that Cadence Design Systems is outperforming its peers so far this year.
Breaking things down more, CDNS is a member of the Computer - Software industry, which includes 42 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, this group has gained an average of 28.99% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to CDNS as it looks to continue its solid performance.