Yahoo Finance Cadence Design Systems (CDNS) Stock Moves -0.06%: What You Should Know
Cadence Design Systems (CDNS) closed the latest trading day at $307.75, indicating a -0.06% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.71%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 6.82% over the past month. This has outpaced the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.53% in that time.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. On that day, Cadence Design Systems is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 0.82%. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 7.35% rise from the equivalent quarter last year.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +15.15% and +12.14%, respectively.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems is currently sporting 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 51.93 right now. This represents a premium compared to its industry's average Forward P/E of 28.34.
One should further note that CDNS currently holds a PEG ratio of 3.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
