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Why Cadence Design Systems (CDNS) Dipped More Than Broader Market Today
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $334.20, moving -4.08% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
The maker of hardware and software products for validating chip designs's stock has climbed by 24.85% in the past month, exceeding the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 26, 2026. In that report, analysts expect Cadence Design Systems to post earnings of $2.04 per share. This would mark year-over-year growth of 5.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.27% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $6.32 billion. These results would represent year-over-year changes of +13.87% and +19.31%, respectively.
Investors should also pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. Cadence Design Systems is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 42.83. This indicates a premium in contrast to its industry's Forward P/E of 16.57.
Meanwhile, CDNS's PEG ratio is currently 2.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why Cadence Design Systems (CDNS) Dipped More Than Broader Market Today
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $334.20, moving -4.08% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
The maker of hardware and software products for validating chip designs's stock has climbed by 24.85% in the past month, exceeding the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 26, 2026. In that report, analysts expect Cadence Design Systems to post earnings of $2.04 per share. This would mark year-over-year growth of 5.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.27% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $6.32 billion. These results would represent year-over-year changes of +13.87% and +19.31%, respectively.
Investors should also pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. Cadence Design Systems is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 42.83. This indicates a premium in contrast to its industry's Forward P/E of 16.57.
Meanwhile, CDNS's PEG ratio is currently 2.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.