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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $250.85, indicating a -1.29% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 1.53% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.22% and lagging the S&P 500's gain of 3.42%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.44, indicating a 14.29% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.18 billion, showing a 15.7% escalation compared to the year-ago quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $4.63 billion. These results would represent year-over-year changes of +13.98% and +13.18%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Cadence Design Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 43.28. This indicates a premium in contrast to its industry's Forward P/E of 31.
We can also see that CDNS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.27 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Cadence Design Systems (CDNS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Cadence Design Systems (CDNS - Free Report) closed the latest trading day at $250.85, indicating a -1.29% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 1.53% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.22% and lagging the S&P 500's gain of 3.42%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.44, indicating a 14.29% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.18 billion, showing a 15.7% escalation compared to the year-ago quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $4.63 billion. These results would represent year-over-year changes of +13.98% and +13.18%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Cadence Design Systems is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 43.28. This indicates a premium in contrast to its industry's Forward P/E of 31.
We can also see that CDNS currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.27 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.