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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $157, marking a +1.93% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.92%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.12%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 9.17% over the past month. This has outpaced the Computer and Technology sector's gain of 2.35% and the S&P 500's gain of 1.54% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release, which is expected to be July 25, 2022. In that report, analysts expect Cadence Design Systems to post earnings of $0.97 per share. This would mark year-over-year growth of 12.79%. Meanwhile, our latest consensus estimate is calling for revenue of $837.05 million, up 14.93% from the prior-year quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $3.4 billion. These results would represent year-over-year changes of +19.76% and +13.81%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 39.12. This represents a premium compared to its industry's average Forward P/E of 24.18.
It is also worth noting that CDNS currently has a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $157, marking a +1.93% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.92%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.12%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 9.17% over the past month. This has outpaced the Computer and Technology sector's gain of 2.35% and the S&P 500's gain of 1.54% in that time.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release, which is expected to be July 25, 2022. In that report, analysts expect Cadence Design Systems to post earnings of $0.97 per share. This would mark year-over-year growth of 12.79%. Meanwhile, our latest consensus estimate is calling for revenue of $837.05 million, up 14.93% from the prior-year quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $3.4 billion. These results would represent year-over-year changes of +19.76% and +13.81%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 39.12. This represents a premium compared to its industry's average Forward P/E of 24.18.
It is also worth noting that CDNS currently has a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.