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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $246.56, reflecting a -1.38% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.62%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 5.69% in the past month. In that same time, the Computer and Technology sector lost 0.34%, while the S&P 500 lost 1.57%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company's earnings report is expected 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.09 per share and a revenue of $4.08 billion, indicating changes of +19.2% and +14.49%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, Cadence Design Systems possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 49.16. For comparison, its industry has an average Forward P/E of 28.27, which means Cadence Design Systems is trading at a premium to the group.
Meanwhile, CDNS's PEG ratio is currently 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $246.56, reflecting a -1.38% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.62%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 5.69% in the past month. In that same time, the Computer and Technology sector lost 0.34%, while the S&P 500 lost 1.57%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company's earnings report is expected 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.09 per share and a revenue of $4.08 billion, indicating changes of +19.2% and +14.49%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, Cadence Design Systems possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 49.16. For comparison, its industry has an average Forward P/E of 28.27, which means Cadence Design Systems is trading at a premium to the group.
Meanwhile, CDNS's PEG ratio is currently 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.