Investors focused on the Computer and Technology space have likely heard of Cadence Design Systems (CDNS), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Cadence Design Systems is one of 642 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the 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 11.41% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, CDNS has gained about 42.85% so far this year. At the same time, Computer and Technology stocks have gained an average of 16.71%. This means that Cadence Design Systems is outperforming the sector as a whole this year.
Looking more specifically, CDNS belongs to the Computer - Software industry, a group that includes 49 individual stocks and currently sits at #16 in the Zacks Industry Rank. Stocks in this group have gained about 17.44% so far this year, so CDNS is performing better this group in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track CDNS. The stock will be looking to continue its solid performance.
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