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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
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The latest trading session saw Cadence Design Systems (CDNS - Free Report) ending at $269.90, denoting a +1.96% adjustment from its last day's close. This change outpaced the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 1%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 2.6% in the past month. In that same time, the Computer and Technology sector gained 2.48%, while the S&P 500 gained 4.03%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. In that report, analysts expect Cadence Design Systems to post earnings of $1.44 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 15.7% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.87 per share and a revenue of $4.63 billion, signifying shifts of +13.98% and +13.18%, respectively, from the last year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 45.08. This indicates a premium in contrast to its industry's Forward P/E of 31.45.
Also, we should mention that CDNS has a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.32 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know
The latest trading session saw Cadence Design Systems (CDNS - Free Report) ending at $269.90, denoting a +1.96% adjustment from its last day's close. This change outpaced the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 1%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 2.6% in the past month. In that same time, the Computer and Technology sector gained 2.48%, while the S&P 500 gained 4.03%.
The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. In that report, analysts expect Cadence Design Systems to post earnings of $1.44 per share. This would mark year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 15.7% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.87 per share and a revenue of $4.63 billion, signifying shifts of +13.98% and +13.18%, respectively, from the last year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Cadence Design Systems is currently being traded at a Forward P/E ratio of 45.08. This indicates a premium in contrast to its industry's Forward P/E of 31.45.
Also, we should mention that CDNS has a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry had an average PEG ratio of 2.32 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.