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Cadence Design Systems (CDNS) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $306.48, marking a -1.32% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.23%. Elsewhere, the Dow lost 1.36%, while the tech-heavy Nasdaq lost 1.4%.
The the stock of maker of hardware and software products for validating chip designs has fallen by 0.66% in the past month, lagging the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. In that report, analysts expect Cadence Design Systems to post earnings of $1.13 per share. This would mark a year-over-year decline of 12.4%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 0.53% drop compared to the year-ago quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +15.15% and +12.24%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Cadence Design Systems possesses 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 52.34 right now. For comparison, its industry has an average Forward P/E of 30.76, 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 3.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
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.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.
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Cadence Design Systems (CDNS) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $306.48, marking a -1.32% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.23%. Elsewhere, the Dow lost 1.36%, while the tech-heavy Nasdaq lost 1.4%.
The the stock of maker of hardware and software products for validating chip designs has fallen by 0.66% in the past month, lagging the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. In that report, analysts expect Cadence Design Systems to post earnings of $1.13 per share. This would mark a year-over-year decline of 12.4%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 0.53% drop compared to the year-ago quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +15.15% and +12.24%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Cadence Design Systems possesses 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 52.34 right now. For comparison, its industry has an average Forward P/E of 30.76, 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 3.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
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.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.