Cadence Design Systems (CDNS) Advances While Market Declines: Some Information for Investors
In the latest market close, Cadence Design Systems (CDNS) reached $296.65, with a +0.03% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.32%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had gained 17.35% over the past month. This has outpaced the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 39.58% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, up 18.66% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% increase. At present, Cadence Design Systems boasts a Zacks Rank of #3 (Hold).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 51.17. This indicates a premium in contrast to its industry's Forward P/E of 32.2.
It's also important to note that CDNS currently trades at a PEG ratio of 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
