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Is Cadence Design Systems (CDNS) Outperforming Other Computer and Technology Stocks This Year?

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Investors focused on the Computer and Technology space have likely heard of Cadence Design Systems (CDNS - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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 a member of the Computer and Technology sector. This group includes 630 individual stocks and currently holds a Zacks Sector Rank of #5. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CDNS is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, 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.

According to our latest data, CDNS has moved about 53.82% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 31.21% on average. This means that Cadence Design Systems is outperforming the sector as a whole this year.

Breaking things down more, CDNS is a member of the Computer - Software industry, which includes 46 individual companies and currently sits at #54 in the Zacks Industry Rank. This group has gained an average of 42.28% so far this year, so CDNS is performing better in this area.

Investors with an interest in Computer and Technology stocks should continue to track CDNS. The stock will be looking to continue its solid performance.


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