Post-Market Activity Shows Cadence Design Systems (CDNS) Down

Trade-Ideas LLC identified Cadence Design Systems (CDNS) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Cadence Design Systems

(

CDNS

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Cadence Design Systems as such a stock due to the following factors:

  • CDNS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.1 million.
  • CDNS is down 4.3% today from today's close.

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More details on CDNS:

Cadence Design Systems, Inc. CDNS has a PE ratio of 3. Currently there are 6 analysts that rate Cadence Design Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Cadence Design Systems has been 3.0 million shares per day over the past 30 days. Cadence Design Systems has a market cap of $6.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.76 and a short float of 9.7% with 8.08 days to cover. Shares are up 20.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cadence Design Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although CDNS's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. To add to this, CDNS has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, CADENCE DESIGN SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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