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Cadence Design Systems (CDNS) Ascends While Market Falls: Some Facts to Note
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In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $280.64, with a +0.39% movement compared to the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 5.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.62% and the S&P 500's gain of 5.94%.
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 October 28, 2024. The company is predicted to post an EPS of $1.44, indicating a 14.29% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 15.72% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.88 per share and revenue of $4.63 billion. These results would represent year-over-year changes of +14.17% and +13.18%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 47.58. This denotes a premium relative to the industry's average Forward P/E of 29.68.
We can also see that CDNS currently has a PEG ratio of 2.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.48.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems (CDNS) Ascends While Market Falls: Some Facts to Note
In the latest market close, Cadence Design Systems (CDNS - Free Report) reached $280.64, with a +0.39% movement compared to the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the maker of hardware and software products for validating chip designs have appreciated by 5.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.62% and the S&P 500's gain of 5.94%.
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 October 28, 2024. The company is predicted to post an EPS of $1.44, indicating a 14.29% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 15.72% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.88 per share and revenue of $4.63 billion. These results would represent year-over-year changes of +14.17% and +13.18%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Cadence Design Systems is currently a Zacks Rank #4 (Sell).
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 47.58. This denotes a premium relative to the industry's average Forward P/E of 29.68.
We can also see that CDNS currently has a PEG ratio of 2.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.48.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.