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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
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Cadence Design Systems (CDNS - Free Report) closed at $347.24 in the latest trading session, marking a -1.34% move from the prior day. This change lagged the S&P 500's 0.06% gain on the day. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 1.34% over the past month, lagging the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. It is anticipated that the company will report an EPS of $1.79, marking a 9.15% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.32 billion, indicating a 8.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.91 per share and a revenue of $5.25 billion, demonstrating changes of +15.75% and +13.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 50.96. This represents a premium compared to its industry average Forward P/E of 27.79.
Also, we should mention that CDNS has a PEG ratio of 3.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.11 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
Cadence Design Systems (CDNS - Free Report) closed at $347.24 in the latest trading session, marking a -1.34% move from the prior day. This change lagged the S&P 500's 0.06% gain on the day. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 1.34% over the past month, lagging the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. It is anticipated that the company will report an EPS of $1.79, marking a 9.15% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.32 billion, indicating a 8.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.91 per share and a revenue of $5.25 billion, demonstrating changes of +15.75% and +13.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 50.96. This represents a premium compared to its industry average Forward P/E of 27.79.
Also, we should mention that CDNS has a PEG ratio of 3.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.11 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.