Cadence Design Systems (CDNS) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Cadence Design Systems (CDNS) closed at $300.01, marking a -1.21% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.37%.
The maker of hardware and software products for validating chip designs's shares have seen an increase of 3.17% over the last month, surpassing the Computer and Technology sector's gain of 2.34% and falling behind the S&P 500's gain of 3.8%.
The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is expected to report EPS of $1.15, down 10.85% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 0.37% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.87 per share and a revenue of $4.59 billion, signifying shifts of +13.98% and +12.34%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.01% higher. Right now, Cadence Design Systems possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 51.7. This expresses a premium compared to the average Forward P/E of 31.87 of its industry.
We can also see that CDNS currently has a PEG ratio of 3.03. 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 2.41 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
