Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today

Cadence Design Systems (CDNS) closed at $301.66 in the latest trading session, marking a +1.59% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day.Prior to today's trading, shares of the maker of hardware and software products for validating chip designs had lost 2.89% over the past month. This has lagged the Computer and Technology sector's gain of 11.17% and the S&P 500's gain of 7.21% 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 $1.57, up 22.66% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.26 billion, reflecting a 18.8% rise from the equivalent quarter last year.CDNS's full-year Zacks Consensus Estimates are calling for earnings of $6.76 per share and revenue of $5.2 billion. These results would represent year-over-year changes of +13.23% and +11.99%, respectively.Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Cadence Design Systems is currently sporting 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 43.9 right now. This valuation marks a premium compared to its industry's average Forward P/E of 28.25.Investors should also note that CDNS has a PEG ratio of 3.26 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 2.41 as trading concluded yesterday.The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 14% of all 250+ industries.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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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