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Cadence Design Systems (CDNS) Stock Moves 2.61%: What You Should Know
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In the latest close session, Cadence Design Systems (CDNS - Free Report) was up +2.61% at $302.60. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq added 0.45%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 6.65% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.18%, and the S&P 500's gain of 1.27%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. 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. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.23% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.12 per share and a revenue of $6.31 billion, signifying shifts of +13.73% and +19.18%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Cadence Design Systems boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 36.31. Its industry sports an average Forward P/E of 16.08, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
It is also worth noting that CDNS currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Cadence Design Systems (CDNS) Stock Moves 2.61%: What You Should Know
In the latest close session, Cadence Design Systems (CDNS - Free Report) was up +2.61% at $302.60. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq added 0.45%.
Shares of the maker of hardware and software products for validating chip designs witnessed a loss of 6.65% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.18%, and the S&P 500's gain of 1.27%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. 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. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.23% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.12 per share and a revenue of $6.31 billion, signifying shifts of +13.73% and +19.18%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Cadence Design Systems boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 36.31. Its industry sports an average Forward P/E of 16.08, so one might conclude that Cadence Design Systems is trading at a premium comparatively.
It is also worth noting that CDNS currently has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.