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

Zacks Equity Research
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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 641 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 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).

Within the past quarter, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 11.41% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, CDNS has gained about 48.28% so far this year. At the same time, Computer and Technology stocks have gained an average of 20.73%. 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 48 individual stocks and currently sits at #10 in the Zacks Industry Rank. On average, stocks in this group have gained 20.35% this year, meaning that CDNS is performing better 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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