Cadence Design Systems (CDNS) closed at $350.00, up 1.31% and outperforming the S&P 500 daily, though it depreciated 4.5% over the past month, underperforming its sector and the broader market. The company is set to report earnings on October 27, 2025, with consensus estimates projecting quarterly EPS of $1.79 (+9.15% Y/Y) and revenue of $1.32 billion (+8.96% Y/Y), alongside annual forecasts for 15.75% EPS growth and 13.06% revenue growth. Despite a stagnant 30-day EPS consensus, CDNS maintains a Zacks Rank #2 (Buy), yet trades at a significant premium with a Forward P/E of 50.02 and a PEG ratio of 3.59, well above its industry averages of 27.01 and 2.09, respectively.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing Read MoreHide Full Article Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $350.00, demonstrating a +1.31% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Shares of the maker of hardware and software products for validating chip designs have depreciated by 4.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%. The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on October 27, 2025. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 9.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.91 per share and a revenue of $5.25 billion, signifying shifts of +15.75% and +13.06%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, stretching from 1 (Strong Buy) to 5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated 1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cadence Design Systems possesses a Zacks Rank of 2 (Buy). Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 50.02. This represents a premium compared to its industry average Forward P/E of 27.01. Investors should also note that CDNS has a PEG ratio of 3.59 right now. 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. The Computer - Software industry had an average PEG ratio of 2.09 as trading concluded yesterday. The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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. Image: Bigstock Cadence Design Systems (CDNS) Surpasses Market Returns: Some Facts Worth Knowing Cadence Design Systems (CDNS - Free Report) ended the recent trading session at $350.00, demonstrating a +1.31% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Shares of the maker of hardware and software products for validating chip designs have depreciated by 4.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.37%, and the S&P 500's gain of 3.68%. The investment community will be paying close attention to the earnings performance of Cadence Design Systems in its upcoming release. The company is slated to reveal its earnings on October 27, 2025. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 9.15% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 8.96% from the prior-year quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.91 per share and a revenue of $5.25 billion, signifying shifts of +15.75% and +13.06%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, stretching from 1 (Strong Buy) to 5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated 1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cadence Design Systems possesses a Zacks Rank of 2 (Buy). Looking at valuation, Cadence Design Systems is presently trading at a Forward P/E ratio of 50.02. This represents a premium compared to its industry average Forward P/E of 27.01. Investors should also note that CDNS has a PEG ratio of 3.59 right now. 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. The Computer - Software industry had an average PEG ratio of 2.09 as trading concluded yesterday. The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Up Cadence Design Systems (CDNS) registered a daily gain of +1.31%, outperforming the S&P 500's +0.58% in the recent trading session. However, its shares have depreciated by 4.5% over the past month, significantly underperforming the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.68% over the same period. The company is slated to report earnings on October 27, 2025, with consensus estimates projecting quarterly EPS at $1.79 (+9.15% Y/Y) and revenue at $1.32 billion (+8.96% Y/Y), while annual forecasts anticipate EPS growth of +15.75% and revenue growth of +13.06%. Despite the recent monthly underperformance and a stagnant consensus EPS projection over the last 30 days, CDNS maintains a Zacks Rank 2 (Buy), indicating a favorable outlook based on estimate revisions. The Computer - Software industry, within which CDNS operates, currently holds a strong Zacks Industry Rank of 88, placing it in the top 36% of all industries, which historically suggests sector-wide outperformance. However, valuation metrics present a notable concern for CDNS, as it trades at a Forward P/E ratio of 50.02, substantially higher than its industry average of 27.01. Furthermore, its PEG ratio of 3.59 significantly exceeds the Computer - Software industry average of 2.09, suggesting that the company is trading at a premium relative to its projected earnings growth.
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