NEW YORK ( TheStreet) -- The following stocks received upgrades to buy from TheStreet Ratings on Friday and are undervalued compared with their peers: Cadence Design Systems ( CDNS), Energy XXI ( EXXI), Atlas Air Worldwide ( AAWW) and Myriad Genetics ( MYGN). Cadence Design Systems The electronic design automation software and hardware company on Wednesday reported fourth-quarter earnings of $11 million, or 4 cents a share. In the previous fourth quarter, Cadence Design posted a loss of $37 million, or 14 cents a share. The stock hit a 52-week high of $11.84 on Thursday. The stock's 52-week low of $8.09 was set on Aug. 19. The stock has risen 12.02% year to date. "Management took a bold stance during the earnings call when it outlined plans to achieve a mid-20s operating margin in 2013," D.A. Davidson analysts wrote in a report Thursday. "While margins should benefit from solid revenue growth and the leverage already imbedded in the model, if revenue growth wanes, management appears willing to implement meaningful cost reductions to meet this aggressive goal. This achievement would bring CDNS' operating margins in line with industry-leader Synopsys (SNPS* - BUY - $29.49) and ultimately drive an EPS run rate in excess of $1.00 per year exiting 2013." Six of the eight analysts who cover Cadence consider it a buy. Two analysts rated it a hold. Cadence Design's estimated price-to-earnings ratio for next year is 13.55. The average for the software industry is 33.34. Rovi ( ROVI) has a low forward P/E ratio of 12.74. TheStreet Ratings gives Cadence a B- grade with $14.18 price target. The stock closed Thursday at $11.64.