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Cadence Design Systems (CDNS) Declines More Than Market: Some Information for Investors
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The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $255.92, reflecting a -0.53% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 0.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. 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. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 18.58% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cadence Design Systems is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 44.5 right now. For comparison, its industry has an average Forward P/E of 30.72, which means Cadence Design Systems is trading at a premium to the group.
It's also important to note that CDNS currently trades at a PEG ratio of 2.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.44 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cadence Design Systems (CDNS) Declines More Than Market: Some Information for Investors
The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $255.92, reflecting a -0.53% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 0.16% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. 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. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, up 18.58% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cadence Design Systems is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 44.5 right now. For comparison, its industry has an average Forward P/E of 30.72, which means Cadence Design Systems is trading at a premium to the group.
It's also important to note that CDNS currently trades at a PEG ratio of 2.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.44 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.