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Cadence Design Systems (CDNS) Suffers a Larger Drop Than the General Market: Key Insights
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Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $306.36, demonstrating a -1.85% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.72%. Meanwhile, the Dow experienced a drop of 1%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 1.63% over the past month, lagging the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 2.16% in that time.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. In that report, analysts expect Cadence Design Systems to post earnings of $1.13 per share. This would mark a year-over-year decline of 12.4%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 0.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $4.59 billion, which would represent changes of +15.15% and +12.24%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Cadence Design Systems possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 52.6. For comparison, its industry has an average Forward P/E of 30.88, which means Cadence Design Systems is trading at a premium to the group.
One should further note that CDNS currently holds a PEG ratio of 3.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CDNS's industry had an average PEG ratio of 2.39 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Suffers a Larger Drop Than the General Market: Key Insights
Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $306.36, demonstrating a -1.85% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.72%. Meanwhile, the Dow experienced a drop of 1%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 1.63% over the past month, lagging the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 2.16% in that time.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. In that report, analysts expect Cadence Design Systems to post earnings of $1.13 per share. This would mark a year-over-year decline of 12.4%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 0.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $4.59 billion, which would represent changes of +15.15% and +12.24%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Cadence Design Systems possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 52.6. For comparison, its industry has an average Forward P/E of 30.88, which means Cadence Design Systems is trading at a premium to the group.
One should further note that CDNS currently holds a PEG ratio of 3.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CDNS's industry had an average PEG ratio of 2.39 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.