We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $279.01, indicating a +1.31% change from the previous session's end. This change outpaced the S&P 500's 0.88% gain on the day. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 1.7% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.72% and the S&P 500's gain of 0.64%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. The company is predicted to post an EPS of $1.33, indicating a 38.54% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.07 billion, reflecting a 18.58% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Cadence Design Systems boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 47.63. This valuation marks a premium compared to its industry's average Forward P/E of 33.07.
Also, we should mention that CDNS has a PEG ratio of 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.25 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $279.01, indicating a +1.31% change from the previous session's end. This change outpaced the S&P 500's 0.88% gain on the day. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 1.7% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.72% and the S&P 500's gain of 0.64%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. The company is predicted to post an EPS of $1.33, indicating a 38.54% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.07 billion, reflecting a 18.58% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Cadence Design Systems boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 47.63. This valuation marks a premium compared to its industry's average Forward P/E of 33.07.
Also, we should mention that CDNS has a PEG ratio of 2.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Software industry stood at 2.25 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.