In the latest market close, Cadence Design Systems (CDNS) reached $304.41, with a +0.98% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.

Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 3.33% in the past month. In that same time, the Computer and Technology sector gained 3.28%, while the S&P 500 gained 0.34%.

Market participants will be closely following the financial results of Cadence Design Systems in its upcoming release. The company's upcoming EPS is projected at $1.82, signifying a 31.88% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.35 billion, indicating a 26.13% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.91 per share and a revenue of $4.63 billion, indicating changes of +14.76% and +13.28%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cadence Design Systems is currently a Zacks Rank #3 (Hold).

In terms of valuation, Cadence Design Systems is presently being traded at a Forward P/E ratio of 50.97. Its industry sports an average Forward P/E of 31.48, so one might conclude that Cadence Design Systems is trading at a premium comparatively.

It is also worth noting that CDNS currently has a PEG ratio of 3.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Software industry had an average PEG ratio of 2.32 as trading concluded yesterday.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want 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 Report

To read this article on Zacks.com click here.

Zacks Investment Research