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Has Cadence Design Systems (CDNS) Outpaced Other Computer and Technology Stocks This Year?

Zacks Equity Research

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cadence Design Systems (CDNS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Cadence Design Systems is one of 629 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CDNS is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 2.13% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CDNS has returned about 54.32% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 28.26%. This means that Cadence Design Systems is performing better than its sector in terms of year-to-date returns.

Looking more specifically, CDNS belongs to the Computer - Software industry, which includes 46 individual stocks and currently sits at #36 in the Zacks Industry Rank. Stocks in this group have gained about 41.65% so far this year, so CDNS is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to CDNS as it looks to continue its solid performance.


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