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) Beats Stock Market Upswing: What Investors Need to Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $320.58, demonstrating a +2.37% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 0.05% over the last month, not keeping up with the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
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 February 17, 2026. The company is forecasted to report an EPS of $1.9, showcasing a 1.06% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.42 billion, up 5.02% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.06 per share and a revenue of $5.28 billion, signifying shifts of +18.26% and 0%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 39.11. This indicates a premium in contrast to its industry's Forward P/E of 22.53.
Also, we should mention that CDNS has a PEG ratio of 2.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CDNS's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $320.58, demonstrating a +2.37% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 0.05% over the last month, not keeping up with the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.
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 February 17, 2026. The company is forecasted to report an EPS of $1.9, showcasing a 1.06% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.42 billion, up 5.02% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.06 per share and a revenue of $5.28 billion, signifying shifts of +18.26% and 0%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 39.11. This indicates a premium in contrast to its industry's Forward P/E of 22.53.
Also, we should mention that CDNS has a PEG ratio of 2.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CDNS's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.