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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $295.73, moving +1.23% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.32%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 5.92% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61%.
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's upcoming EPS is projected at $1.33, signifying a 38.54% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.07 billion, indicating a 18.58% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 50.53. This indicates a premium in contrast to its industry's Forward P/E of 33.59.
Investors should also note that CDNS has a PEG ratio of 2.82 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 Computer - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $295.73, moving +1.23% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.32%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 5.92% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61%.
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's upcoming EPS is projected at $1.33, signifying a 38.54% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.07 billion, indicating a 18.58% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 50.53. This indicates a premium in contrast to its industry's Forward P/E of 33.59.
Investors should also note that CDNS has a PEG ratio of 2.82 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 Computer - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 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.