In the latest trading session, Cadence Design Systems (CDNS) closed at $373.14, marking a -1.22% move from the previous day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq depreciated by 0.8%.
Shares of the maker of hardware and software products for validating chip designs have depreciated by 7.42% over the course of the past month, underperforming the Computer and Technology sector's loss of 5.47%, and the S&P 500's loss of 1.43%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company is predicted to post an EPS of $2.05, indicating a 24.24% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.58 billion, up 23.58% from the prior-year quarter.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $7.94 per share and revenue of $6.2 billion. These results would represent year-over-year changes of +11.2% and +17.11%, respectively.
Investors might also notice recent changes to analyst estimates for Cadence Design Systems. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 47.58. This denotes a premium relative to the industry average Forward P/E of 15.63.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 42% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
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