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 $329.64, moving +1.08% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
The maker of hardware and software products for validating chip designs's shares have seen a decrease of 12.65% over the last month, not keeping up with the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on October 27, 2025. In that report, analysts expect Cadence Design Systems to post earnings of $1.79 per share. This would mark year-over-year growth of 9.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 47.22. Its industry sports an average Forward P/E of 27.14, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 3.39 right now. 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 Computer - Software industry had an average PEG ratio of 2.07 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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 $329.64, moving +1.08% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
The maker of hardware and software products for validating chip designs's shares have seen a decrease of 12.65% over the last month, not keeping up with the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on October 27, 2025. In that report, analysts expect Cadence Design Systems to post earnings of $1.79 per share. This would mark year-over-year growth of 9.15%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 47.22. Its industry sports an average Forward P/E of 27.14, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 3.39 right now. 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 Computer - Software industry had an average PEG ratio of 2.07 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.