The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cadence Design Systems (CDNS - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Cadence Design Systems is one of 629 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CDNS is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 2.13% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CDNS has returned about 59.91% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 29.82% on a year-to-date basis. This means that Cadence Design Systems is performing better than its sector in terms of year-to-date returns.
Looking more specifically, CDNS belongs to the Computer - Software industry, a group that includes 46 individual stocks and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 42.52% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.
CDNS will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.