Is Cadence Design Systems (CDNS) Stock Outpacing Its Computer and Technology Peers This Year?
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Investors focused on the Computer and Technology space have likely heard of Cadence Design Systems (CDNS), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.
Cadence Design Systems is one of 638 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CDNS is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 1.42% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CDNS has returned about 52.14% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 23.51% on a year-to-date basis. This shows that Cadence Design Systems is outperforming its peers so far this year.
Looking more specifically, CDNS belongs to the Computer - Software industry, which includes 48 individual stocks and currently sits at #69 in the Zacks Industry Rank. Stocks in this group have gained about 30.77% so far this year, so CDNS is performing better this group in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track CDNS. The stock will be looking to continue its solid performance.
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