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Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing
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Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $322.80, demonstrating a +1.87% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 8.98% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 5.11%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.13, indicating a 12.4% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.02 billion, indicating a 0.53% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $4.59 billion, which would represent changes of +15.15% and +12.24%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Currently, Cadence Design Systems is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cadence Design Systems is holding a Forward P/E ratio of 53.4. For comparison, its industry has an average Forward P/E of 30.56, which means Cadence Design Systems is trading at a premium to the group.
One should further note that CDNS currently holds a PEG ratio of 3.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.41 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Surpasses Market Returns: Some Facts Worth Knowing
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $322.80, demonstrating a +1.87% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 8.98% in the past month. In that same time, the Computer and Technology sector gained 6.04%, while the S&P 500 gained 5.11%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.13, indicating a 12.4% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.02 billion, indicating a 0.53% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $4.59 billion, which would represent changes of +15.15% and +12.24%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Currently, Cadence Design Systems is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cadence Design Systems is holding a Forward P/E ratio of 53.4. For comparison, its industry has an average Forward P/E of 30.56, which means Cadence Design Systems is trading at a premium to the group.
One should further note that CDNS currently holds a PEG ratio of 3.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.41 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.