Is Cadence Design Systems (CDNS) Outperforming Other Computer and Technology Stocks This Year?
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Cadence Design Systems (CDNS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Cadence Design Systems is a member of our Computer and Technology group, which includes 646 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Cadence Design Systems is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CDNS' full-year earnings has moved 7.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CDNS has returned 28.9% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 18.2% on average. This shows that Cadence Design Systems is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Twilio (TWLO). The stock is up 27.4% year-to-date.
For Twilio, the consensus EPS estimate for the current year has increased 35.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cadence Design Systems is a member of the Computer - Software industry, which includes 38 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 15.8% this year, meaning that CDNS is performing better in terms of year-to-date returns.
On the other hand, Twilio belongs to the Internet - Software industry. This 146-stock industry is currently ranked #69. The industry has moved +24.9% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Cadence Design Systems and Twilio as they attempt to continue their solid performance.
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