Cadence Design Systems (CDNS) Stock Moves -0.83%: What You Should Know

Cadence Design Systems (CDNS) closed at $160.97 in the latest trading session, marking a -0.83% move from the prior day. This change was narrower than the S&P 500's 1.72% loss on the day. Meanwhile, the Dow lost 1.62%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 12.16% over the past month. This has lagged the Computer and Technology sector's loss of 11.99% and the S&P 500's loss of 9.09% in that time.

Investors will be hoping for strength from Cadence Design Systems as it approaches its next earnings release. On that day, Cadence Design Systems is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 21.25%. Our most recent consensus estimate is calling for quarterly revenue of $869.88 million, up 15.84% from the year-ago period.

CDNS's full-year Zacks Consensus Estimates are calling for earnings of $4.11 per share and revenue of $3.5 billion. These results would represent year-over-year changes of +24.92% and +17%, respectively.

Any recent changes to analyst estimates for Cadence Design Systems should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Cadence Design Systems currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Cadence Design Systems is holding a Forward P/E ratio of 39.46. For comparison, its industry has an average Forward P/E of 23.4, which means Cadence Design Systems is trading at a premium to the group.

Meanwhile, CDNS's PEG ratio is currently 2.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 1.95 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 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.

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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