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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $252.71, with a -1.25% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.1%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 1.37% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.84% and the S&P 500's gain of 2.75%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.33, marking a 38.54% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.07 billion, showing a 18.58% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. 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 44.27 right now. Its industry sports an average Forward P/E of 30.65, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
We can also see that CDNS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.
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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $252.71, with a -1.25% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.1%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 1.37% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.84% and the S&P 500's gain of 2.75%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.33, marking a 38.54% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.07 billion, showing a 18.58% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. 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 44.27 right now. Its industry sports an average Forward P/E of 30.65, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
We can also see that CDNS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.