Cadence Design Systems (CDNS) closed the most recent trading day at $74.35, moving -0.46% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.65%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 7.92% in the past month. In that same time, the Computer and Technology sector gained 5.63%, while the S&P 500 gained 4.11%.
Wall Street will be looking for positivity from CDNS as it approaches its next earnings report date. This is expected to be July 22, 2019. The company is expected to report EPS of $0.53, up 17.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $579.07 million, up 11.71% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $2.32 billion. These results would represent year-over-year changes of +12.3% and +8.53%, respectively.
Any recent changes to analyst estimates for CDNS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CDNS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CDNS currently has a Forward P/E ratio of 35.63. For comparison, its industry has an average Forward P/E of 29.97, which means CDNS is trading at a premium to the group.
Meanwhile, CDNS's PEG ratio is currently 3.24. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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