The most recent trading session ended with Cadence Design Systems (CDNS) standing at $234.25, reflecting a +0.12% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 1.14%, and the technology-centric Nasdaq decreased by 0.18%.

Shares of the maker of hardware and software products for validating chip designs have depreciated by 23.45% over the course of the past month, underperforming the Computer and Technology sector's loss of 11.69% and the S&P 500's loss of 7.29%.

Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.49, marking a 27.35% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.24 billion, up 22.39% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.71 per share and a revenue of $5.19 billion, signifying shifts of +12.4% and +11.74%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cadence Design Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 3.44% fall in the Zacks Consensus EPS estimate. Cadence Design Systems is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 34.87. For comparison, its industry has an average Forward P/E of 25.9, which means Cadence Design Systems is trading at a premium to the group.

One should further note that CDNS currently holds a PEG ratio of 2.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Software stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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