Is Cadence Design Systems (CDNS) Outperforming 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 one of 605 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CDNS is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CDNS's full-year earnings has moved 16.77% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CDNS has returned 56.47% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 21.42% on average. This shows that Cadence Design Systems is outperforming its peers so far this year.
Looking more specifically, CDNS belongs to the Computer - Software industry, a group that includes 42 individual stocks and currently sits at #95 in the Zacks Industry Rank. On average, stocks in this group have gained 28.69% this year, meaning that CDNS is performing better in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track CDNS. The stock will be looking to continue its solid performance.
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