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Cadence Design Systems (CDNS) Stock Sinks As Market Gains: What You Should Know
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Cadence Design Systems (CDNS - Free Report) closed at $236.06 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 18.05% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. In that report, analysts expect Cadence Design Systems to post earnings of $1.17 per share. This would mark year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $971.66 million, up 13.31% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +17.1% and +13.74%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 47.77. Its industry sports an average Forward P/E of 27.53, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 2.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.32 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 111, which puts it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cadence Design Systems (CDNS) Stock Sinks As Market Gains: What You Should Know
Cadence Design Systems (CDNS - Free Report) closed at $236.06 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 18.05% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. In that report, analysts expect Cadence Design Systems to post earnings of $1.17 per share. This would mark year-over-year growth of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $971.66 million, up 13.31% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +17.1% and +13.74%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 47.77. Its industry sports an average Forward P/E of 27.53, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
Investors should also note that CDNS has a PEG ratio of 2.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.32 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 111, which puts it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.