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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 interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Cadence Design Systems (CDNS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 our Computer and Technology group, which includes 637 different companies and currently sits at #9 in the Zacks Sector Rank. 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 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 4.46% 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 47.93% so far this year. At the same time, Computer and Technology stocks have gained an average of 14.33%. 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, which includes 47 individual stocks and currently sits at #145 in the Zacks Industry Rank. On average, this group has gained an average of 22.83% so far this year, meaning that CDNS is performing better 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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