Cadence Design Systems, Inc.

NASDAQ Global Select
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Slightly Bullish +25

Cadence Design Systems (CDNS) Stock Moves 2.61%: What You Should Know

AI-generated analysis

📈 CDNS shares gained 2.61% to close at $302.60 despite a broader market decline in the Dow.

📉 The stock has lost 6.65% over the previous month, trailing both the Computer and Technology sector and the S&P 500.

💰 Analysts anticipate quarterly EPS of $2.04, marking a 5.7% rise compared to the same quarter last year.

📊 Projected quarterly revenue is expected to reach $1.61 billion, up 20.23% from the year-ago period.

🔭 Annual consensus estimates forecast earnings of $8.12 per share and revenue of $6.31 billion.

📉 The company currently holds a Zacks Rank of #3 (Hold) with an unchanged EPS estimate over the last 30 days.

💸 CDNS trades at a Forward P/E ratio of 36.31, significantly higher than the industry average of 16.08.

📉 The stock's PEG ratio stands at 2.49, compared to an industry average of 1.47 for Computer - Software.

Bullish Signals
  • Analysts anticipate quarterly EPS of $2.04, representing a 5.7% year-over-year increase.
  • Projected quarterly revenue is expected to reach $1.61 billion, up 20.23% from the year-ago period.
Risk Factors
  • The stock has declined 6.65% over the previous month, underperforming its sector and the S&P 500.
  • CDNS trades at a Forward P/E ratio of 36.31, which is more than double the industry average of 16.08.
Full Analysis
Cadence Design Systems (CDNS) shares rose 2.61% to $302.60 in the latest session, though the stock has underperformed its sector and the broader market over the past month with a 6.65% decline. Analysts are closely monitoring the company ahead of its upcoming earnings report, which is expected to show an EPS of $2.04, representing a 5.7% year-over-year increase. Consensus estimates project quarterly revenue of $1.61 billion, up 20.23% from the prior year, while annual forecasts anticipate earnings of $8.12 per share and revenue of $6.31 billion, reflecting significant growth trends. However, valuation metrics indicate CDNS is trading at a premium compared to its industry peers, with a Forward P/E ratio of 36.31 versus an industry average of 16.08. The company currently holds a Zacks Rank of #3 (Hold) and a PEG ratio of 2.49, which is higher than the Computer - Software industry average of 1.47. While the stock trades at a valuation premium, the consensus EPS estimate has remained unchanged over the last 30 days, suggesting analysts are maintaining their current outlook on the company's near-term performance.