Cadence Design Systems (CDNS) Beats Stock Market Upswing: What Investors Need to Know

Cadence Design Systems (CDNS) ended the recent trading session at $320.58, demonstrating a +2.37% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.25%. The maker of hardware and software products for validating chip designs's shares have seen an increase of 0.05% over the last month, not keeping up with the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57%.Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company plans to announce its earnings on February 17, 2026. The company is forecasted to report an EPS of $1.9, showcasing a 1.06% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.42 billion, up 5.02% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.06 per share and a revenue of $5.28 billion, signifying shifts of +18.26% and 0%, respectively, from the last year. Investors might also notice recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems presently features a Zacks Rank of #2 (Buy). In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 39.11. This indicates a premium in contrast to its industry's Forward P/E of 22.53. Also, we should mention that CDNS has a PEG ratio of 2.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CDNS's industry had an average PEG ratio of 1.74 as of yesterday's close. The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. 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