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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $74.02, marking a +0.91% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 18.88% over the past month, outpacing the Computer and Technology sector's gain of 7.66% and the S&P 500's gain of 7.86% in that time.
Wall Street will be looking for positivity from CDNS as it approaches its next earnings report date. In that report, analysts expect CDNS to post earnings of $0.53 per share. This would mark year-over-year growth of 17.78%. Our most recent consensus estimate is calling for quarterly revenue of $579.07 million, up 11.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $2.32 billion. These totals would mark changes of +12.3% and +8.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CDNS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CDNS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CDNS is holding a Forward P/E ratio of 34.99. For comparison, its industry has an average Forward P/E of 30.29, which means CDNS is trading at a premium to the group.
Meanwhile, CDNS's PEG ratio is currently 3.18. 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. CDNS's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.
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Cadence Design Systems (CDNS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS - Free Report) closed at $74.02, marking a +0.91% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had gained 18.88% over the past month, outpacing the Computer and Technology sector's gain of 7.66% and the S&P 500's gain of 7.86% in that time.
Wall Street will be looking for positivity from CDNS as it approaches its next earnings report date. In that report, analysts expect CDNS to post earnings of $0.53 per share. This would mark year-over-year growth of 17.78%. Our most recent consensus estimate is calling for quarterly revenue of $579.07 million, up 11.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $2.32 billion. These totals would mark changes of +12.3% and +8.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CDNS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CDNS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CDNS is holding a Forward P/E ratio of 34.99. For comparison, its industry has an average Forward P/E of 30.29, which means CDNS is trading at a premium to the group.
Meanwhile, CDNS's PEG ratio is currently 3.18. 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. CDNS's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow CDNS in the coming trading sessions, be sure to utilize Zacks.com.