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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Cadence Design Systems (CDNS - Free Report) was down 1.89% at $366.30. The stock trailed the S&P 500, which registered a daily loss of 0.55%. Meanwhile, the Dow experienced a drop of 0.19%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 8.16% lagged the Computer and Technology sector's gain of 9.88% and outpaced the S&P 500's gain of 3.64%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company is predicted to post an EPS of $1.79, indicating a 9.15% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 8.96% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.91 per share and a revenue of $5.25 billion, signifying shifts of +15.75% and +13.07%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 54.06. This represents a premium compared to its industry average Forward P/E of 29.39.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.88. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Cadence Design Systems (CDNS - Free Report) was down 1.89% at $366.30. The stock trailed the S&P 500, which registered a daily loss of 0.55%. Meanwhile, the Dow experienced a drop of 0.19%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 8.16% lagged the Computer and Technology sector's gain of 9.88% and outpaced the S&P 500's gain of 3.64%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company is predicted to post an EPS of $1.79, indicating a 9.15% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 8.96% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.91 per share and a revenue of $5.25 billion, signifying shifts of +15.75% and +13.07%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 54.06. This represents a premium compared to its industry average Forward P/E of 29.39.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.88. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.