We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $324.52, moving +0.94% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.22%.
The the stock of maker of hardware and software products for validating chip designs has risen by 4.18% in the past month, leading the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 2.69%.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on February 18, 2025. The company is expected to report EPS of $1.82, up 31.88% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 26.13% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained unchanged. Currently, Cadence Design Systems is carrying 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 47.04 right now. For comparison, its industry has an average Forward P/E of 31.4, which means Cadence Design Systems is trading at a premium to the group.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $324.52, moving +0.94% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.22%.
The the stock of maker of hardware and software products for validating chip designs has risen by 4.18% in the past month, leading the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 2.69%.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on February 18, 2025. The company is expected to report EPS of $1.82, up 31.88% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 26.13% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained unchanged. Currently, Cadence Design Systems is carrying 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 47.04 right now. For comparison, its industry has an average Forward P/E of 31.4, which means Cadence Design Systems is trading at a premium to the group.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.