CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$377.92
-6.25 (-1.63%)
▼
5d:
+0.57%
30d:
-1.87%
90d:
+42.26%
BUY
MODERATE Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Jul 27, 2026
13d
Smart Money Accumulation
None View Scanner →
Strength: 3.8/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: CDNS shows positive signals but monitor for confirmation. Market pricing in 2.1% decline. Moderate conviction.
💡 BUY OPPORTUNITY: CDNS shows positive signals but monitor for confirmation. Market pricing in 2.1% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$457.62
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$284.15
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CDNS is currently trading at $377.92, which is considered slightly high relative to its 30-day fair value range of $373.30 to $392.10. The stock's valuation (Forward PE: 40.9) is in line with its historical norms (43.6). Remarkably, the market is currently pricing in an annual earnings decline of 2.1% over the next few years. This pessimistic expectation contrasts with the company's recent 23.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CDNS is in a strong uptrend. Immediate support is located at $365.63, while resistance sits at $391.00.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CDNS is in a strong uptrend. Immediate support is located at $365.63, while resistance sits at $391.00.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$373.30 -
$392.10
Company Quality Score
66/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($388.78)
Trading Range Analysis
30-Day Trading Range
$373.30 -
$392.10
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$365.63
Resistance Level
$391.00
Current Trend
Strong Uptrend
Technical data as of
Jul 13, 2026
Fundamental Context
Forward P/E (Next Year Est.)
40.87
Wall Street Target
$388.78
(+1.2%)
Revenue Growth (YoY)
18.7%
Earnings Growth (YoY)
23.0%
Profit Margin
21.2%
Valuation Discount vs History
-2.1% cheaper
PE vs Historical
40.9 vs 43.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-2.1%
(market-implied from PE analysis)
1-Year Target
$376.10
(-2%)
2-Year Target
$368.20
(-4%)
3-Year Target
$360.47
(-6%)
3-Yr Target (if PE normalizes)
(PE: 41→44)
$384.55
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 40.9, Growth: 108.9%)
$1296.57
(+238%)
Base:
(SPY PE: 21.8, Growth: 108.9%)
$690.96
(+80%)
Bear:
(PE: 18.5, Growth: 108.9%)
$587.31
(+53%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (47x PE), but valuation improves significantly next year (41x PE) as earnings recover.
Forward PE: 47.17 | Forward EPS (Implied): $8.14
Bull Case
$463.89
(+21%)
Analyst growth 15.0%, PE expands to 49.5
Base Case
$384.17
(0%)
Market implied 0.0%, PE stable at 47.2
Bear Case
$293.89
(-24%)
Severe decline -15.0%, PE contracts to 42.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 40.9 to 43.6
Stabilization Target:
$409.83
(+6.7%)
PE Expansion Potential:
+6.7%
Share & Embed Analysis
Last updated: July 13, 2026 4:21 PM ET
Data refreshes hourly during market hours. Next update: 5:21 PM
Data refreshes hourly during market hours. Next update: 5:21 PM
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
2
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
John M Wall
SELL
21500 shares
2026-04-16
Paul Cunningham
SELL
1000 shares
2026-04-01
Ita M Brennan
SELL
180 shares
2026-03-17
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