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Cadence Design Systems (CDNS) Stock Slides as Market Rises: Facts to Know Before You Trade
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The latest trading session saw Cadence Design Systems (CDNS - Free Report) ending at $311.34, denoting a -1.48% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 5.33% over the last month, surpassing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is forecasted to report an EPS of $1.13, showcasing a 12.4% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, down 0.53% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and a revenue of $4.59 billion, representing changes of +15.15% and +12.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 53.25. This valuation marks a premium compared to its industry's average Forward P/E of 31.03.
Investors should also note that CDNS has a PEG ratio of 3.12 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.42.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems (CDNS) Stock Slides as Market Rises: Facts to Know Before You Trade
The latest trading session saw Cadence Design Systems (CDNS - Free Report) ending at $311.34, denoting a -1.48% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 5.33% over the last month, surpassing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is forecasted to report an EPS of $1.13, showcasing a 12.4% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, down 0.53% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and a revenue of $4.59 billion, representing changes of +15.15% and +12.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 53.25. This valuation marks a premium compared to its industry's average Forward P/E of 31.03.
Investors should also note that CDNS has a PEG ratio of 3.12 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.42.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.