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Cadence Design Systems (CDNS) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $231.87, marking a -1.09% move from the previous day. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 0.51% over the past month. This has lagged the Computer and Technology sector's gain of 1.84% and the S&P 500's gain of 2.65% 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 24, 2023. The company is expected to report EPS of $1.17, up 8.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 46.86. This valuation marks a premium compared to its industry's average Forward P/E of 27.53.
Investors should also note that CDNS has a PEG ratio of 2.4 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 was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $231.87, marking a -1.09% move from the previous day. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 0.51% over the past month. This has lagged the Computer and Technology sector's gain of 1.84% and the S&P 500's gain of 2.65% 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 24, 2023. The company is expected to report EPS of $1.17, up 8.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 46.86. This valuation marks a premium compared to its industry's average Forward P/E of 27.53.
Investors should also note that CDNS has a PEG ratio of 2.4 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 was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.