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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $292.72, marking a +1.98% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.01%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 1.22%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 4.15% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.06%, and the S&P 500's loss of 2.86%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.89, showcasing a 20.38% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.43 billion, up 15.02% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.1 per share and revenue of $5.99 billion. These results would represent year-over-year changes of +13.45% and +13%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% downward. Cadence Design Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cadence Design Systems is holding a Forward P/E ratio of 35.43. This denotes a premium relative to the industry average Forward P/E of 17.15.
It's also important to note that CDNS currently trades at a PEG ratio of 2.77. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.49.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $292.72, marking a +1.98% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.01%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 1.22%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 4.15% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.06%, and the S&P 500's loss of 2.86%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.89, showcasing a 20.38% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.43 billion, up 15.02% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.1 per share and revenue of $5.99 billion. These results would represent year-over-year changes of +13.45% and +13%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% downward. Cadence Design Systems is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cadence Design Systems is holding a Forward P/E ratio of 35.43. This denotes a premium relative to the industry average Forward P/E of 17.15.
It's also important to note that CDNS currently trades at a PEG ratio of 2.77. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.49.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.