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Are Computer and Technology Stocks Lagging Cadence Design Systems (CDNS) This Year?

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? Let's take a closer look at the stock's year-to-date performance to find out.

Cadence Design Systems is one of 625 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cadence Design Systems is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CDNS' full-year earnings has moved 0.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, CDNS has moved about 70.1% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 46%. This means that Cadence Design Systems is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, Weave Communications, Inc. (WEAV), has outperformed the sector so far this year. The stock's year-to-date return is 106.1%.

For Weave Communications, Inc. the consensus EPS estimate for the current year has increased 12.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cadence Design Systems belongs to the Computer - Software industry, which includes 36 individual stocks and currently sits at #57 in the Zacks Industry Rank. This group has gained an average of 57.7% so far this year, so CDNS is performing better in this area.

On the other hand, Weave Communications, Inc. belongs to the Communication - Network Software industry. This 7-stock industry is currently ranked #166. The industry has moved -13.7% year to date.

Investors interested in the Computer and Technology sector may want to keep a close eye on Cadence Design Systems and Weave Communications, Inc. as they attempt to continue their solid performance.

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