Yahoo Finance Cadence Design Systems (CDNS) Stock Moves 0.13%: What You Should Know
Cadence Design Systems (CDNS) closed at $213.89 in the latest trading session, marking a +0.13% move from the prior day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had gained 8.83% in the past month. In that same time, the Computer and Technology sector gained 10.29%, while the S&P 500 gained 6.51%.
Wall Street will be looking for positivity from Cadence Design Systems as it approaches its next earnings report date. This is expected to be April 24, 2023. The company is expected to report EPS of $1.25, up 6.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 11.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.97 per share and revenue of $4.04 billion, which would represent changes of +16.39% and +13.39%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cadence Design Systems is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Cadence Design Systems has a Forward P/E ratio of 43.01 right now. For comparison, its industry has an average Forward P/E of 27.24, which means Cadence Design Systems is trading at a premium to the group.
Investors should also note that CDNS has a PEG ratio of 2.25 right now. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
