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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $233.22, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.93%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 13.99% over the past month. This has outpaced the Computer and Technology sector's gain of 10.74% and the S&P 500's gain of 4.61% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. The company is expected to report EPS of $1.17, up 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $971.66 million, up 13.31% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +17.1% and +13.74%, respectively.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 45.83. Its industry sports an average Forward P/E of 26.54, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Meanwhile, CDNS's PEG ratio is currently 2.35. 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. The Computer - Software was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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) Outpaces Stock Market Gains: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $233.22, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.93%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 13.99% over the past month. This has outpaced the Computer and Technology sector's gain of 10.74% and the S&P 500's gain of 4.61% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. The company is expected to report EPS of $1.17, up 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $971.66 million, up 13.31% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +17.1% and +13.74%, respectively.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 45.83. Its industry sports an average Forward P/E of 26.54, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Meanwhile, CDNS's PEG ratio is currently 2.35. 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. The Computer - Software was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.