Here's Why Cadence Design Systems (CDNS) is a Strong Momentum Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Cadence Design Systems (CDNS)
Based in San Jose, CA, Cadence Design Systems Inc is a leader in electronic system design space. The company’s Intelligent System Design strategy aids users to transform design concepts into reality by offering computational software, hardware and IP.
CDNS boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Cadence Design Systems has seen some interesting price action recently; the stock is down 2.2% over the past one week and up 12.1% over the past four weeks. And in the last one-year period, CDNS has gained 52.7%. As for the stock's trading volume, 1,476,576.13 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2023, one analyst revised their earnings estimate higher in the last 60 days for CDNS, while the Zacks Consensus Estimate has increased $0.01 to $5.11 per share. CDNS also boasts an average earnings surprise of 4.1%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding CDNS to their portfolios.
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Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
