Back to top

Image: Bigstock

Cadence Design Systems (CDNS) Rises As Market Takes a Dip: Key Facts

Read MoreHide Full Article

Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $266.79, indicating a +1.34% change from the previous session's end. This change outpaced the S&P 500's 0.07% loss on the day.

The maker of hardware and software products for validating chip designs's shares have seen a decrease of 4.81% over the last month, not keeping up with the Computer and Technology sector's gain of 2.5% and the S&P 500's gain of 3.98%.

Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. The company is predicted to post an EPS of $1.33, indicating a 38.54% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.07 billion, indicating a 18.58% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Cadence Design Systems boasts a Zacks Rank of #4 (Sell).

Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 45.53. This valuation marks a premium compared to its industry's average Forward P/E of 32.22.

We can additionally observe that CDNS currently boasts a PEG ratio of 2.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.22.

The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 40% of all industries, numbering over 250.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cadence Design Systems, Inc. (CDNS) - free report >>

Published in