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Cadence Design Systems (CDNS) Declines More Than Market: Some Information for Investors
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $325.75, moving -1.95% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 5.49% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2025. On that day, Cadence Design Systems is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 9.15%. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 8.96% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.91 per share and revenue of $5.25 billion, indicating changes of +15.75% and +13.06%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Cadence Design Systems holds a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 48.11. This valuation marks a premium compared to its industry average Forward P/E of 27.49.
Also, we should mention that CDNS has a PEG ratio of 3.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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) Declines More Than Market: Some Information for Investors
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $325.75, moving -1.95% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 5.49% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 27, 2025. On that day, Cadence Design Systems is projected to report earnings of $1.79 per share, which would represent year-over-year growth of 9.15%. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 8.96% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.91 per share and revenue of $5.25 billion, indicating changes of +15.75% and +13.06%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Cadence Design Systems holds a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 48.11. This valuation marks a premium compared to its industry average Forward P/E of 27.49.
Also, we should mention that CDNS has a PEG ratio of 3.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.