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Is Cadence Design Systems (CDNS) Stock Outpacing Its Computer and Technology Peers 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? Let's take a closer look at the stock's year-to-date performance to find out.

Cadence Design Systems is one of 613 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. 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 3.87% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CDNS has returned about 18.32% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of -0.95% on a year-to-date basis. This shows that Cadence Design Systems is outperforming its peers so far this year.

To break things down more, CDNS belongs to the Computer - Software industry, a group that includes 42 individual companies and currently sits at #72 in the Zacks Industry Rank. On average, this group has gained an average of 7.58% so far this year, meaning that CDNS is performing better in terms of year-to-date returns.

CDNS will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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