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Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today
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In the latest close session, Cadence Design Systems (CDNS - Free Report) was up +1.72% at $359.55. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 20.76% over the last month, surpassing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on October 26, 2026. On that day, Cadence Design Systems is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 5.7%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.61 billion, indicating a 20.23% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and revenue of $6.32 billion, which would represent changes of +13.87% and +19.28%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Cadence Design Systems is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 43.49 right now. This indicates a premium in contrast to its industry's Forward P/E of 16.67.
We can also see that CDNS currently has a PEG ratio of 2.99. 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. The Computer - Software was holding an average PEG ratio of 1.44 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 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today
In the latest close session, Cadence Design Systems (CDNS - Free Report) was up +1.72% at $359.55. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 20.76% over the last month, surpassing the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on October 26, 2026. On that day, Cadence Design Systems is projected to report earnings of $2.04 per share, which would represent year-over-year growth of 5.7%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.61 billion, indicating a 20.23% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.13 per share and revenue of $6.32 billion, which would represent changes of +13.87% and +19.28%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Cadence Design Systems is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 43.49 right now. This indicates a premium in contrast to its industry's Forward P/E of 16.67.
We can also see that CDNS currently has a PEG ratio of 2.99. 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. The Computer - Software was holding an average PEG ratio of 1.44 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 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.