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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $271.03, marking a -1.13% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.
The the stock of maker of hardware and software products for validating chip designs has risen by 1.93% in the past month, leading the Computer and Technology sector's gain of 1.78% and undershooting the S&P 500's gain of 2.06%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $1.18 billion, up 15.72% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.88 per share and revenue of $4.63 billion, which would represent changes of +14.17% and +13.18%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 46.66. This expresses a premium compared to the average Forward P/E of 29.13 of its industry.
We can additionally observe that CDNS currently boasts a PEG ratio of 2.66. 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 2.42 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 68, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $271.03, marking a -1.13% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.
The the stock of maker of hardware and software products for validating chip designs has risen by 1.93% in the past month, leading the Computer and Technology sector's gain of 1.78% and undershooting the S&P 500's gain of 2.06%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $1.18 billion, up 15.72% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.88 per share and revenue of $4.63 billion, which would represent changes of +14.17% and +13.18%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 46.66. This expresses a premium compared to the average Forward P/E of 29.13 of its industry.
We can additionally observe that CDNS currently boasts a PEG ratio of 2.66. 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 2.42 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 68, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.