Cadence Design Systems (CDNS) Stock Moves -0.44%: What You Should Know
In the latest trading session, Cadence Design Systems (CDNS) closed at $153.05, marking a -0.44% move from the previous day. This change was narrower than the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 7.42% in the past month. In that same time, the Computer and Technology sector lost 6.95%, while the S&P 500 lost 5.13%.
Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release, which is expected to be October 24, 2022. On that day, Cadence Design Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.88 million, up 15.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $3.5 billion, which would represent changes of +25.23% and +17.11%, respectively, from the prior year.
Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 37.33. This valuation marks a premium compared to its industry's average Forward P/E of 22.86.
We can also see that CDNS currently has a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CDNS's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
