Are Computer and Technology Stocks Lagging Cadence Design Systems (CDNS) This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cadence Design Systems (CDNS) one of those stocks right now? 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 the Computer and Technology sector. This group includes 621 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Cadence Design Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CDNS' full-year earnings has moved 5.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CDNS has gained about 11.4% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 9.4% on a year-to-date basis. This shows that Cadence Design Systems is outperforming its peers so far this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Fair Isaac (FICO). The stock has returned 10.2% year-to-date.
The consensus estimate for Fair Isaac's current year EPS has increased 2.1% 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, a group that includes 36 individual stocks and currently sits at #80 in the Zacks Industry Rank. On average, this group has gained an average of 8.3% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.
On the other hand, Fair Isaac belongs to the Computers - IT Services industry. This 39-stock industry is currently ranked #80. The industry has moved +7.8% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Cadence Design Systems and Fair Isaac as they could maintain their solid performance.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
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