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Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today
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Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $311.53, indicating a +0.77% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a loss of 0.1%, and the technology-centric Nasdaq increased by 0.16%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 2.83% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.23, up 0.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 7.35% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.93 per share and a revenue of $4.59 billion, signifying shifts of +15.15% and +12.14%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 52.13. This represents a premium compared to its industry's average Forward P/E of 27.71.
One should further note that CDNS currently holds a PEG ratio of 3.05. 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 was holding an average PEG ratio of 2.43 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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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Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today
Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $311.53, indicating a +0.77% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a loss of 0.1%, and the technology-centric Nasdaq increased by 0.16%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 2.83% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.23, up 0.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 7.35% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.93 per share and a revenue of $4.59 billion, signifying shifts of +15.15% and +12.14%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 52.13. This represents a premium compared to its industry's average Forward P/E of 27.71.
One should further note that CDNS currently holds a PEG ratio of 3.05. 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 was holding an average PEG ratio of 2.43 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.