Cadence Design Systems (CDNS) Stock Moves -0.19%: What You Should Know

The most recent trading session ended with Cadence Design Systems (CDNS) standing at $241.29, reflecting a -0.19% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 1.22%. At the same time, the Dow lost 1.55%, and the tech-heavy Nasdaq lost 0.35%.Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 18.96% over the past month. This has lagged the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 2.31% in that time.Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.50, up 28.21% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.24 billion, reflecting a 22.39% rise from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates project earnings of $6.72 per share and a revenue of $5.19 billion, demonstrating changes of +12.56% and +11.74%, respectively, from the preceding year.It is also important to note the recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.53% lower. Cadence Design Systems currently has a Zacks Rank of #3 (Hold).From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 35.97. This valuation marks a premium compared to its industry's average Forward P/E of 26.94.One should further note that CDNS currently holds a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software was holding an average PEG ratio of 2.1 at yesterday's closing price.The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks