Cadence Design Systems (CDNS) Outperforms Broader Market: What You Need to Know

In the latest market close, Cadence Design Systems (CDNS) reached $308.58, with a +1.37% movement compared to the previous day. This change outpaced the S&P 500's 1.1% gain on the day. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq increased by 1.35%.Shares of the maker of hardware and software products for validating chip designs have depreciated by 2.55% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.09% and the S&P 500's gain of 0.22%.The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. On that day, Cadence Design Systems is projected to report earnings of $1.82 per share, which would represent year-over-year growth of 31.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.35 billion, indicating a 26.13% increase compared to the same quarter of the previous year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.91 per share and revenue of $4.63 billion, indicating changes of +14.76% and +13.28%, respectively, compared to the previous 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cadence Design Systems presently features a Zacks Rank of #3 (Hold).Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 51.47 right now. This indicates a premium in contrast to its industry's Forward P/E of 31.21.It is also worth noting that CDNS currently has a PEG ratio of 3.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Software stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks