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Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing
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Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $350.00, demonstrating a +1.31% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 4.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%.
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 October 27, 2025. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 9.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter.
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 +13.06%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cadence Design Systems possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 50.02. This represents a premium compared to its industry average Forward P/E of 27.01.
Investors should also note that CDNS has a PEG ratio of 3.59 right now. 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. The Computer - Software industry had an average PEG ratio of 2.09 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $350.00, demonstrating a +1.31% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 4.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%.
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 October 27, 2025. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 9.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter.
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 +13.06%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cadence Design Systems possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 50.02. This represents a premium compared to its industry average Forward P/E of 27.01.
Investors should also note that CDNS has a PEG ratio of 3.59 right now. 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. The Computer - Software industry had an average PEG ratio of 2.09 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.