Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Cadence Design Systems (CDNS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of CDNS and the rest of the Computer and Technology group's stocks.
Cadence Design Systems is one of 638 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CDNS is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 17.24% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CDNS has returned about 56.60% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 16.49%. This shows that Cadence Design Systems is outperforming its peers so far this year.
Looking more specifically, CDNS belongs to the Computer - Software industry, a group that includes 47 individual stocks and currently sits at #56 in the Zacks Industry Rank. On average, this group has gained an average of 23% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on CDNS as it attempts to continue its solid performance.
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