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Cadence Design Systems (CDNS) Dips More Than Broader Markets: What You Should Know
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Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $214.57, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 4.42% over the past month. This has lagged the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% 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 April 24, 2023. The company is expected to report EPS of $1.25, up 6.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, up 11.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $4.04 billion. These totals would mark changes of +16.39% and +13.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 43.69. For comparison, its industry has an average Forward P/E of 27.29, which means Cadence Design Systems is trading at a premium to the group.
Investors should also note that CDNS has a PEG ratio of 2.29 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.17 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 74, which puts it in the top 30% 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) Dips More Than Broader Markets: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $214.57, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 4.42% over the past month. This has lagged the Computer and Technology sector's gain of 10.18% and the S&P 500's gain of 7.71% 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 April 24, 2023. The company is expected to report EPS of $1.25, up 6.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, up 11.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $4.04 billion. These totals would mark changes of +16.39% and +13.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cadence Design Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 43.69. For comparison, its industry has an average Forward P/E of 27.29, which means Cadence Design Systems is trading at a premium to the group.
Investors should also note that CDNS has a PEG ratio of 2.29 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry currently had an average PEG ratio of 2.17 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 74, which puts it in the top 30% 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.