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Is Cadence Design Systems (CDNS) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research

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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Cadence Design Systems is one of 637 companies in the Computer and Technology group. The Computer and Technology group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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 1.42% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CDNS has moved about 54.35% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 17.41%. 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 48 individual stocks and currently sits at #40 in the Zacks Industry Rank. Stocks in this group have gained about 28.70% 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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