We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $234.01, marking a +1.46% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 3.85% over the past month, lagging the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. On that day, Cadence Design Systems is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 14.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 10.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.09 per share and revenue of $4.08 billion. These totals would mark changes of +19.2% and +14.49%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 45.35 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.61.
It is also worth noting that CDNS currently has a PEG ratio of 2.48. 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. CDNS's industry had an average PEG ratio of 2.3 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 $234.01, marking a +1.46% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 3.85% over the past month, lagging the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. On that day, Cadence Design Systems is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 14.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 10.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.09 per share and revenue of $4.08 billion. These totals would mark changes of +19.2% and +14.49%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 45.35 right now. This valuation marks a premium compared to its industry's average Forward P/E of 27.61.
It is also worth noting that CDNS currently has a PEG ratio of 2.48. 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. CDNS's industry had an average PEG ratio of 2.3 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.