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Is Cadence Design Systems (CDNS) Stock Outpacing Its Computer and Technology Peers This Year?

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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Cadence Design Systems (CDNS - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Cadence Design Systems is one of 621 companies in the Computer and Technology group. The Computer and Technology group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cadence Design Systems is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CDNS' full-year earnings has moved 0.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CDNS has returned about 10.4% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 8.4% on a year-to-date basis. This means that Cadence Design Systems is performing better than its sector in terms of year-to-date returns.

One other Computer and Technology stock that has outperformed the sector so far this year is Fair Isaac (FICO - Free Report) . The stock is up 10% year-to-date.

In Fair Isaac's case, the consensus EPS estimate for the current year increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cadence Design Systems belongs to the Computer - Software industry, a group that includes 36 individual stocks and currently sits at #57 in the Zacks Industry Rank. On average, this group has gained an average of 9.3% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.

On the other hand, Fair Isaac belongs to the Computers - IT Services industry. This 39-stock industry is currently ranked #87. The industry has moved +7.7% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Cadence Design Systems and Fair Isaac as they could maintain their solid performance.


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