We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
Read MoreHide Full Article
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $273.32, moving -0.28% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 2.17% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company is expected to report EPS of $1.44, up 14.29% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.18 billion, reflecting a 15.7% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.87 per share and a revenue of $4.63 billion, indicating changes of +13.98% and +13.18%, respectively, from the former year.
Investors should also note any 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Cadence Design Systems holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 46.67 right now. This represents a premium compared to its industry's average Forward P/E of 28.91.
It's also important to note that CDNS currently trades at a PEG ratio of 2.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.39.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
Cadence Design Systems (CDNS - Free Report) closed the most recent trading day at $273.32, moving -0.28% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 2.17% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company is expected to report EPS of $1.44, up 14.29% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.18 billion, reflecting a 15.7% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.87 per share and a revenue of $4.63 billion, indicating changes of +13.98% and +13.18%, respectively, from the former year.
Investors should also note any 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Cadence Design Systems holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 46.67 right now. This represents a premium compared to its industry's average Forward P/E of 28.91.
It's also important to note that CDNS currently trades at a PEG ratio of 2.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.39.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.