Cadence Design Systems (CDNS) closed the most recent trading day at $368.23, moving -1.12% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 0.44% over the past month, outpacing the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company is expected to report EPS of $2.05, up 24.24% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.58 billion, indicating a 23.58% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $6.2 billion. These totals would mark changes of +11.2% and +17.11%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems is currently a Zacks Rank #3 (Hold).
In the context of valuation, Cadence Design Systems is at present trading with a Forward P/E ratio of 46.91. This indicates a premium in contrast to its industry's Forward P/E of 14.1.
We can also see that CDNS currently has a PEG ratio of 3.46. 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. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.27.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 34% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
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