A closer look at Cadence Design Systems’ performance compared to the Computer and Technology sector
Investors in the Computer and Technology sector are always on the lookout for top-performing companies. Cadence Design Systems (CDNS) has caught the attention of many investors, but how does its recent performance compare to the sector as a whole? By examining the company’s year-to-date returns and comparing them to the sector average, we can gain insights into its relative performance.
Cadence Design Systems’ Strong Performance
Cadence Design Systems is part of the Computer and Technology group, which currently ranks at #6 within the Zacks Sector Rank. The Zacks Sector Rank evaluates 16 different sector groups based on the average Zacks Rank of individual stocks within each group. Cadence Design Systems currently holds a Zacks Rank of #2 (Buy), indicating its potential to outperform the broader market over the next few months.
Positive Earnings Outlook
Analyst sentiment for Cadence Design Systems is improving, with a 0.8% increase in the Zacks Consensus Estimate for the company’s full-year earnings in the past quarter. This positive outlook suggests that the stock’s earnings potential is on the rise.
Outperforming the Sector
Year-to-date data reveals that Cadence Design Systems has returned approximately 69.7%, outperforming the Computer and Technology sector’s average gain of 44.4%. This indicates that the company is delivering stronger returns compared to its peers in the sector.
Dell Technologies’ Strong Performance
Another standout stock in the Computer and Technology sector is Dell Technologies (DELL), which has returned 83.7% year-to-date. The consensus estimate for Dell Technologies’ current year earnings per share (EPS) has increased by 16.8% in the past three months. Like Cadence Design Systems, Dell Technologies also holds a Zacks Rank of #2 (Buy).
Industry Comparison
Cadence Design Systems belongs to the Computer – Software industry, which includes 37 individual stocks and currently ranks at #61 in the Zacks Industry Rank. This industry has gained an average of 52.6% year-to-date, indicating that Cadence Design Systems is performing better within its industry.
In contrast, Dell Technologies belongs to the Computers – IT Services industry, which consists of 39 stocks and is currently ranked at #93. This industry has seen a year-to-date gain of +27.1%.
Conclusion:
Cadence Design Systems’ strong performance in the Computer and Technology sector is evident through its outperformance of the sector average and its positive earnings outlook. With a Zacks Rank of #2 (Buy), the company is well-positioned to continue its solid performance. Investors interested in the sector should closely monitor Cadence Design Systems and Dell Technologies as they strive to maintain their impressive returns.
Disclaimer: The information provided in this article is based solely on publicly available data and does not constitute investment advice. Investors are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
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