Cadence Design Systems (CDNS) Stock Moves -1.37%: What You Should Know

In the latest trading session, Cadence Design Systems (CDNS) closed at $164.69, marking a -1.37% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the maker of hardware and software products for validating chip designs had lost 3.91% over the past month, outpacing the Computer and Technology sector's loss of 10.31% and the S&P 500's loss of 8.19% in that time.

Cadence Design Systems will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cadence Design Systems to post earnings of $0.97 per share. This would mark year-over-year growth of 21.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.88 million, up 15.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $3.5 billion, which would represent changes of +24.92% and +17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Cadence Design Systems is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Cadence Design Systems's current valuation metrics, including its Forward P/E ratio of 40.59. This valuation marks a premium compared to its industry's average Forward P/E of 23.89.

Meanwhile, CDNS's PEG ratio is currently 2.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CDNS's industry had an average PEG ratio of 1.97 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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