Cadence Design Systems stock jumped nearly 6% Tuesday after the chip equipment maker announced the latest in a string of terrific earnings reports. Cadence has outstanding ratings and its stock has enthusiastically embraced the budding market recovery from the April market correction.
Top-ranked Cadence stock dipped to 221.56 on April 7 amid the market pullback. It traded around 298 Wednesday afternoon, up 76 points during April after closing higher in six of the last eight trading sessions.
Cadence Stock Joins Elite Group
Wednesday morning Cadence got a Relative Strength Rating upgrade to 83, up from 79 the day before. The upgraded RS rating shows that Cadence stock tops 83% of all stocks for price performance over the past year. It's good news for the stock because market research shows that stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they launch their biggest runs
Cadence Design Systems holds the No. 1 rank among its peers in the 10-stock Computer Software-Design industry group, according to Stock Checkup. Autodesk and Ansys are also among the group's highest-rated stocks.
Cadence Design develops and sells software and hardware used by semiconductor companies for electronic design of chip.
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Other ratings for Cadence Design Systems are even stronger. For example, the San Jose, Calif.-based company boasts a terrific 98 EPS Rating out of 99. Its 95 Composite Rating is also a mark of strength. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
CDNS stock is building a consolidation with a 326.19 entry. See if the stock can clear the breakout price in volume at least 40% higher than normal. Shares were last down about 1.5% Wednesday afternoon.
Three Quarters In Row Of 30%-Plus Profit Growth
Cadence Design Systems posted 34% earnings growth in its most recent report, to $1.57 per share, its third quarter in a row of 30%-plus EPS growth. Sales in its latest period came in 23% higher year over year to $1.24 billion.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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