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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $235.40, marking a +0.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. The company is expected to report EPS of $1.25, up 15.74% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $4.05 billion, which would represent changes of +17.1% and +13.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems is currently a Zacks Rank #2 (Buy).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 46.88. For comparison, its industry has an average Forward P/E of 27.43, which means Cadence Design Systems is trading at a premium to the group.
Also, we should mention that CDNS has a PEG ratio of 2.4. 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. CDNS's industry had an average PEG ratio of 2.35 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $235.40, marking a +0.38% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. The company is expected to report EPS of $1.25, up 15.74% 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $4.05 billion, which would represent changes of +17.1% and +13.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems is currently a Zacks Rank #2 (Buy).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 46.88. For comparison, its industry has an average Forward P/E of 27.43, which means Cadence Design Systems is trading at a premium to the group.
Also, we should mention that CDNS has a PEG ratio of 2.4. 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. CDNS's industry had an average PEG ratio of 2.35 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.