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Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $268.50, marking a +0.64% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 1.23% over the past month. This has lagged the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% in that time.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on February 12, 2024. 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.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cadence Design Systems boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 46.15. This signifies a premium in comparison to the average Forward P/E of 33.1 for its industry.
Investors should also note that CDNS has a PEG ratio of 2.57 right now. 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 average PEG ratio for the Computer - Software industry stood at 2.23 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 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.
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) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $268.50, marking a +0.64% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 1.23% over the past month. This has lagged the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% in that time.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on February 12, 2024. 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.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cadence Design Systems boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 46.15. This signifies a premium in comparison to the average Forward P/E of 33.1 for its industry.
Investors should also note that CDNS has a PEG ratio of 2.57 right now. 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 average PEG ratio for the Computer - Software industry stood at 2.23 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.