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Is Cadence Design Systems (CDNS) Stock Outpacing Its Computer and Technology Peers 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 a member of our Computer and Technology group, which includes 640 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. 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 17.24% 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 56.90% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 24.22% on a year-to-date basis. As we can see, Cadence Design Systems is performing better than its sector in the calendar year.

Looking more specifically, CDNS belongs to the Computer - Software industry, a group that includes 48 individual stocks and currently sits at #23 in the Zacks Industry Rank. Stocks in this group have gained about 27.62% so far this year, so CDNS is performing better this group 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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