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? 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 a member of the Computer and Technology sector. This group includes 638 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CDNS is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 0.68% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CDNS has returned 74.89% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 23.16% on a year-to-date basis. 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 48 individual stocks and currently sits at #74 in the Zacks Industry Rank. This group has gained an average of 35.69% so far this year, so CDNS is performing better in this area.
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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