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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $294.37, moving +1.25% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.76%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 1.12%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 6.74% over the past month, outpacing the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 2.5% in that time.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2024. The company is predicted to post an EPS of $1.34, indicating a 39.58% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.07 billion, indicating a 18.66% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Cadence Design Systems is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 50.16 right now. This denotes a premium relative to the industry's average Forward P/E of 33.95.
We can also see that CDNS currently has a PEG ratio of 2.79. 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 2.33 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $294.37, moving +1.25% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.76%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 1.12%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 6.74% over the past month, outpacing the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 2.5% in that time.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2024. The company is predicted to post an EPS of $1.34, indicating a 39.58% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.07 billion, indicating a 18.66% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Cadence Design Systems is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 50.16 right now. This denotes a premium relative to the industry's average Forward P/E of 33.95.
We can also see that CDNS currently has a PEG ratio of 2.79. 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 2.33 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.