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Cadence Design Systems (CDNS) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, Cadence Design Systems (CDNS - Free Report) was down 5.46% at $265.66. This change lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.35%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 3.21% over the past month, lagging the Computer and Technology sector's gain of 0.88% and the S&P 500's gain of 0.51%.
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 April 27, 2026. On that day, Cadence Design Systems is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 21.66%. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 15.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.12 per share and a revenue of $5.99 billion, demonstrating changes of +13.73% and +13%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 34.62. This denotes a premium relative to the industry average Forward P/E of 15.07.
We can additionally observe that CDNS currently boasts a PEG ratio of 2.7. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.36.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cadence Design Systems (CDNS) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, Cadence Design Systems (CDNS - Free Report) was down 5.46% at $265.66. This change lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.35%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 3.21% over the past month, lagging the Computer and Technology sector's gain of 0.88% and the S&P 500's gain of 0.51%.
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 April 27, 2026. On that day, Cadence Design Systems is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 21.66%. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 15.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.12 per share and a revenue of $5.99 billion, demonstrating changes of +13.73% and +13%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 34.62. This denotes a premium relative to the industry average Forward P/E of 15.07.
We can additionally observe that CDNS currently boasts a PEG ratio of 2.7. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 1.36.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.