Has Cadence Design Systems (CDNS) Outpaced Other Computer and Technology Stocks This Year?
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? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Cadence Design Systems is a member of the Computer and Technology sector. This group includes 612 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CDNS is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 7.45% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CDNS has returned about 57.61% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 27.87% on average. This means that Cadence Design Systems is outperforming the sector as a whole this year.
Breaking things down more, CDNS is a member of the Computer - Software industry, which includes 41 individual companies and currently sits at #66 in the Zacks Industry Rank. On average, stocks in this group have gained 33.68% this year, meaning that CDNS is performing better in terms of year-to-date returns.
CDNS will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.