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Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
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In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $252.98, with a +1.29% movement compared to the previous day. This change outpaced the S&P 500's 0.43% gain on the day. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.71%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 5.62% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.56% and the S&P 500's loss of 2.1%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 23, 2023. The company is predicted to post an EPS of $1.21, indicating a 14.15% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 10.9% from the prior-year quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.09 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +19.2% and +14.49%, respectively.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.04% higher. As of now, Cadence Design Systems holds a Zacks Rank of #2 (Buy).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 49.11. This expresses a premium compared to the average Forward P/E of 28 of its industry.
Meanwhile, CDNS's PEG ratio is currently 2.68. 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. The Computer - Software industry had an average PEG ratio of 2.26 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $252.98, with a +1.29% movement compared to the previous day. This change outpaced the S&P 500's 0.43% gain on the day. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.71%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 5.62% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.56% and the S&P 500's loss of 2.1%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 23, 2023. The company is predicted to post an EPS of $1.21, indicating a 14.15% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 10.9% from the prior-year quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.09 per share and revenue of $4.08 billion. These results would represent year-over-year changes of +19.2% and +14.49%, respectively.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.04% higher. As of now, Cadence Design Systems holds a Zacks Rank of #2 (Buy).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 49.11. This expresses a premium compared to the average Forward P/E of 28 of its industry.
Meanwhile, CDNS's PEG ratio is currently 2.68. 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. The Computer - Software industry had an average PEG ratio of 2.26 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.