Cadence Design Systems (CDNS) closed the most recent trading day at $308.14, moving +1.41% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.

The investment community will be closely monitoring the performance of Cadence Design Systems in its forthcoming earnings report. The company is expected to report EPS of $1.82, up 31.88% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 26.13% upward movement from the same quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cadence Design Systems. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 44.46. This indicates a premium in contrast to its industry's Forward P/E of 32.71.

Meanwhile, CDNS's PEG ratio is currently 2.86. 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. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 3.24.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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