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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) ended the recent trading session at $279.06, demonstrating a -3.56% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Meanwhile, the Dow experienced a drop of 0.29%, and the technology-dominated Nasdaq saw a decrease of 0.56%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 10.91% in the past month. In that same time, the Computer and Technology sector gained 1.49%, while the S&P 500 lost 0.82%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.04, marking a 5.7% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 20.23% growth compared to the corresponding quarter of the prior year.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.12 per share and revenue of $6.31 billion. These results would represent year-over-year changes of +13.73% and +19.18%, respectively.
Investors should also pay attention to any latest changes in 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Cadence Design Systems boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 35.63. This signifies a premium in comparison to the average Forward P/E of 15.78 for its industry.
One should further note that CDNS currently holds a PEG ratio of 2.45. 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 1.43 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Cadence Design Systems (CDNS) Declines More Than Market: Some Information for Investors
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $279.06, demonstrating a -3.56% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Meanwhile, the Dow experienced a drop of 0.29%, and the technology-dominated Nasdaq saw a decrease of 0.56%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 10.91% in the past month. In that same time, the Computer and Technology sector gained 1.49%, while the S&P 500 lost 0.82%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.04, marking a 5.7% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 20.23% growth compared to the corresponding quarter of the prior year.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.12 per share and revenue of $6.31 billion. These results would represent year-over-year changes of +13.73% and +19.18%, respectively.
Investors should also pay attention to any latest changes in 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Cadence Design Systems boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 35.63. This signifies a premium in comparison to the average Forward P/E of 15.78 for its industry.
One should further note that CDNS currently holds a PEG ratio of 2.45. 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 1.43 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.