Cadence Design Systems (CDNS) closed at $164.27 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 14.51% over the past month. This has lagged the Computer and Technology sector's loss of 14.29% and the S&P 500's loss of 9.06% in that time.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. On that day, Cadence Design Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 21.25%. Meanwhile, our latest consensus estimate is calling for revenue of $869.88 million, up 15.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.11 per share and revenue of $3.5 billion. These totals would mark changes of +24.92% and +17%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 moved 0.03% higher. Cadence Design Systems currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 39.63. Its industry sports an average Forward P/E of 23.62, so we one might conclude that Cadence Design Systems is trading at a premium comparatively.
We can also see that CDNS currently has a PEG ratio of 2.23. 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. CDNS's industry had an average PEG ratio of 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 170, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
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