Cadence Design Systems Inc. (CDNS): Today's Highlighted Computer Software & Services Leader

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cadence Design Systems ( CDNS) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.3%. By the end of trading, Cadence Design Systems rose 32 cents (2.4%) to $13.64 on heavy volume. Throughout the day, 6.1 million shares of Cadence Design Systems exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $13.24-$13.72 after having opened the day at $13.39 as compared to the previous trading day's close of $13.32. Other companies within the Computer Software & Services industry that increased today were: Chyron Corporation ( CHYR), up 9.8%, Helios and Matheson Information Technology ( HMNY), up 9.6%, Crexendo ( EXE), up 7.5%, and Camelot Information Systems ( CIS), up 7%.
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Cadence Design Systems, Inc. develops, sells or leases, licenses, and maintains electronic design automation software, hardware, verification intellectual property (IP), and design IP for semiconductor and electronic system customers worldwide. Cadence Design Systems has a market cap of $3.77 billion and is part of the technology sector. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Friday. Currently there are five analysts that rate Cadence Design Systems a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Cadence Design Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, TSR ( TSRI), down 8.4%, CounterPath Corporation ( CPAH), down 7.7%, Intelligent Systems ( INS), down 5.7%, and Authentidate Holding Corporation ( ADAT), down 5.4%, were all laggards within the computer software & services industry with VMWare ( VMW) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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