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) Increases Despite Market Slip: Here's What You Need to Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $317.43, demonstrating a +0.69% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.12%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.41%.
The maker of hardware and software products for validating chip designs's stock has climbed by 6.3% in the past month, exceeding the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. On that day, Cadence Design Systems is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 10.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, down 0.37% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +13.98% and +12.34%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 5.01% higher. Cadence Design Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 53.66. For comparison, its industry has an average Forward P/E of 32.5, which means Cadence Design Systems is trading at a premium to the group.
Investors should also note that CDNS has a PEG ratio of 3.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.45.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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) Increases Despite Market Slip: Here's What You Need to Know
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $317.43, demonstrating a +0.69% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.12%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.41%.
The maker of hardware and software products for validating chip designs's stock has climbed by 6.3% in the past month, exceeding the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. On that day, Cadence Design Systems is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 10.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, down 0.37% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +13.98% and +12.34%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 5.01% higher. Cadence Design Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 53.66. For comparison, its industry has an average Forward P/E of 32.5, which means Cadence Design Systems is trading at a premium to the group.
Investors should also note that CDNS has a PEG ratio of 3.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.45.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.