Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market

Company Performance - Cadence Design Systems (CDNS) closed at $314.07, down 1.79% from the previous trading day, underperforming the S&P 500 which lost 0.88% [1] - Over the last month, CDNS shares increased by 2.6%, lagging behind the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11% [1] Upcoming Financial Results - Cadence Design Systems is set to announce earnings on July 22, 2024, with projected earnings of $1.23 per share, indicating a year-over-year growth of 0.82% [2] - The consensus estimate for revenue is $1.05 billion, reflecting a 7.35% increase from the same quarter last year [2] - For the full year, projected earnings are $5.93 per share and revenue is $4.59 billion, representing changes of +15.15% and +12.14% respectively from the prior year [2] Analyst Forecasts and Rankings - Recent revisions to analyst forecasts for Cadence Design Systems are important, as positive estimate revisions are seen as a good sign for the company's business outlook [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Cadence Design Systems at 4 (Sell) [3] Valuation Metrics - Cadence Design Systems has a Forward P/E ratio of 53.93, which is a premium compared to the industry's average Forward P/E of 30.46 [4] - The company has a PEG ratio of 3.15, compared to the Computer - Software industry's average PEG ratio of 2.46 [4] - The Computer - Software industry ranks in the bottom 39% of all industries, with a Zacks Industry Rank of 154 [4]