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Cadence Design Systems (CDNS) Stock Moves -0.31%: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $252.20, marking a -0.31% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.63%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 4.91% in the past month. In that same time, the Computer and Technology sector lost 1.17%, while the S&P 500 lost 2.35%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 23, 2023. It is anticipated that the company will report an EPS of $1.21, marking a 14.15% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1 billion, up 10.9% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.09 per share and a revenue of $4.08 billion, representing changes of +19.2% and +14.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Such recent modifications usually signify the changing landscape 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is presently being traded at a Forward P/E ratio of 49.74. This signifies a premium in comparison to the average Forward P/E of 28.3 for its industry.
It is also worth noting that CDNS currently has a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.26 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cadence Design Systems (CDNS) Stock Moves -0.31%: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $252.20, marking a -0.31% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.63%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 4.91% in the past month. In that same time, the Computer and Technology sector lost 1.17%, while the S&P 500 lost 2.35%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is scheduled to release its earnings on October 23, 2023. It is anticipated that the company will report an EPS of $1.21, marking a 14.15% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1 billion, up 10.9% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.09 per share and a revenue of $4.08 billion, representing changes of +19.2% and +14.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. Such recent modifications usually signify the changing landscape 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is presently being traded at a Forward P/E ratio of 49.74. This signifies a premium in comparison to the average Forward P/E of 28.3 for its industry.
It is also worth noting that CDNS currently has a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.26 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.