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Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $326.50, marking a +1.37% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.03%.
The maker of hardware and software products for validating chip designs's stock has climbed by 10.12% in the past month, exceeding the Computer and Technology sector's gain of 8.7% and the S&P 500's gain of 3.34%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. On that day, Cadence Design Systems is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 0.82%. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 7.35% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.93 per share and a revenue of $4.59 billion, indicating changes of +15.15% and +12.14%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 54.31. This valuation marks a premium compared to its industry's average Forward P/E of 28.15.
Investors should also note that CDNS has a PEG ratio of 3.17 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. The Computer - Software industry had an average PEG ratio of 2.39 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $326.50, marking a +1.37% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.03%.
The maker of hardware and software products for validating chip designs's stock has climbed by 10.12% in the past month, exceeding the Computer and Technology sector's gain of 8.7% and the S&P 500's gain of 3.34%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. On that day, Cadence Design Systems is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 0.82%. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 7.35% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.93 per share and a revenue of $4.59 billion, indicating changes of +15.15% and +12.14%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 54.31. This valuation marks a premium compared to its industry's average Forward P/E of 28.15.
Investors should also note that CDNS has a PEG ratio of 3.17 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. The Computer - Software industry had an average PEG ratio of 2.39 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.