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Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market
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The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $314.07, reflecting a -1.79% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.88% for the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 2.6% over the last month, not keeping up with the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on July 22, 2024. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 7.35% rise from the equivalent quarter last year.
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 +12.14%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cadence Design Systems holds a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 53.93. This represents a premium compared to its industry's average Forward P/E of 30.46.
We can also see that CDNS currently has a PEG ratio of 3.15. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market
The most recent trading session ended with Cadence Design Systems (CDNS - Free Report) standing at $314.07, reflecting a -1.79% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.88% for the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 2.6% over the last month, not keeping up with the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on July 22, 2024. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 7.35% rise from the equivalent quarter last year.
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 +12.14%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cadence Design Systems holds a Zacks Rank of #4 (Sell).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 53.93. This represents a premium compared to its industry's average Forward P/E of 30.46.
We can also see that CDNS currently has a PEG ratio of 3.15. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.46.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.