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The most recent trading session ended with Cadence Design Systems (CDNS) standing at $297.62, reflecting a -0.05% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.51%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
Shares of the maker of hardware and software products for validating chip designs witnessed a gain of 0.03% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.79% and the S&P 500's gain of 2.87%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 18, 2025. The company is forecasted to report an EPS of $1.82, showcasing a 31.88% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.35 billion, showing a 26.13% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cadence Design Systems presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Cadence Design Systems is currently exchanging hands at a Forward P/E ratio of 43.57. This represents a premium compared to its industry's average Forward P/E of 31.41.
Investors should also note that CDNS has a PEG ratio of 2.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.31.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.