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Cadence Design Systems (CDNS) Gains But Lags Market: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $274.33, marking a +0.3% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 1.2% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.11% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is forecasted to report an EPS of $1.33, showcasing a 38.54% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.07 billion, indicating a 18.58% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $5.10 per share and a revenue of $4.09 billion, demonstrating changes of +19.44% and +14.79%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Right now, Cadence Design Systems possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 53.6 right now. This valuation marks a premium compared to its industry's average Forward P/E of 32.15.
Also, we should mention that CDNS has a PEG ratio of 2.99. 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 2.5 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cadence Design Systems (CDNS) Gains But Lags Market: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $274.33, marking a +0.3% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 1.2% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.11% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is forecasted to report an EPS of $1.33, showcasing a 38.54% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.07 billion, indicating a 18.58% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $5.10 per share and a revenue of $4.09 billion, demonstrating changes of +19.44% and +14.79%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Right now, Cadence Design Systems possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 53.6 right now. This valuation marks a premium compared to its industry's average Forward P/E of 32.15.
Also, we should mention that CDNS has a PEG ratio of 2.99. 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 2.5 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.