Is CDNS stock a Buy, Sell, or Hold?

Based on our analysis, CDNS is currently a WAIT with low confidence. 📊 MIXED SIGNALS: CDNS shows conflicting indicators. Wait for confirmation before entering.

What is the fair value of CDNS stock?

Our analysis estimates the fair value range for CDNS to be between $286.51 and $334.48. The current price is $351.35.

What is the analyst price target for CDNS?

The average Wall Street analyst price target for CDNS is $405.47. This implies a potential upside of 15.4% from current levels.

Cadence Design Systems (CDNS) Stock: Buy, Sell, or Hold?

CDNS - Cadence Design Systems

SERVICES-PREPACKAGED SOFTWARE

$351.35

0.62 (0.18%) ▲

5d: +7.73%

30d: +14.57%

90d: -6.5%

WAIT

LOW Confidence

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Analysis Updated: Oct 2, 2026 12:00 AM ET

Earnings: Oct 26, 2026 20d

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Interactive Price Chart (1 Month)

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💡

Bottom Line:
📊 MIXED SIGNALS: CDNS shows conflicting indicators. Wait for confirmation before entering.

See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

Adjust Growth Assumption: 25.0%

0% (Stagnation) 50% (Hyper Growth)

EST. PRICE IN 2031

$465.77

Based on 14.5% avg growth

INTRINSIC VALUE TODAY

$289.21

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.

View Full DCF Model

In-depth Analysis How we analyze

Valuation Analysis: CDNS is currently trading at $351.35, which is considered extended relative to its 30-day fair value range of $286.51 to $334.48. From a valuation perspective, the stock is trading at a discount (Forward PE: 36.7) compared to its historical average (40.9). Remarkably, the market is currently pricing in an annual earnings decline of 3.5% over the next few years. This pessimistic expectation contrasts with the company's recent 125.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, CDNS is in a strong downtrend. The price is approaching resistance at $356.51. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: CDNS scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $405.47 (+15.4%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED

Historical Trading Range $286.51 - $334.48

Company Quality Score 39/100 (SELL)

Volume Confirmation HIGH

Confidence Score 21.4%

Protect Your Profits

CDNS is technically overbought (RSI 71). Consider hedging now to protect against a potential pullback while keeping your upside.

View Profit Protection Plan

All Signals

BEARISH: Price extended above range (+5.0% above its trading range)
BEARISH: Weak technical setup (15/100)
BULLISH: High volume confirmation
BULLISH: Trading below Wall St target ($405.47)
WARNING: Composite score 38/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $286.51 - $334.48

Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $283.39

Resistance Level $356.51

Current Trend Strong Downtrend

Technical data as of Oct 2, 2026

Fundamental Context

Forward P/E (Next Year Est.) 36.72

Wall Street Target $405.47 (+15.4%)

Revenue Growth (YoY) 24.2%

Earnings Growth (YoY) 125.4%

Profit Margin 23.6%

Valuation Discount vs History -3.5% cheaper

PE vs Historical 36.7 vs 40.9 CHEAP

Market-Implied Price Targets If current PE multiple persists

Implied Growth (YoY): -3.5% (market-implied from PE analysis)

1-Year Target $339.05 (-4%)

2-Year Target $327.19 (-7%)

3-Year Target $315.73 (-10%)

3-Yr Target (if PE normalizes) (PE: 37→41) $351.63 (+0%)

3-Year Scenarios Using analyst projected EPS growth

Bull: (PE: 36.7, Growth: 99.0%) $1185.81 (+238%)

Base: (SPY PE: 20.4, Growth: 99.0%) $658.70 (+88%)

Bear: (PE: 17.3, Growth: 99.0%) $559.90 (+59%)

📈 Valuation based on Current Earnings

Forward PE: 31.55 | Forward EPS (Implied): $11.14

Bull Case $424.26 (+21%)

Analyst growth 15.0%, PE expands to 33.1

Base Case $351.35 (0%)

Market implied 0.0%, PE stable at 31.6

Bear Case $268.78 (-24%)

Severe decline -15.0%, PE contracts to 28.4

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 36.7 to 40.9

Stabilization Target: $391.30 (+11.4%)

PE Expansion Potential: +11.4%

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Last updated: October 05, 2026 1:54 AM ET
Data refreshes hourly during market hours. Next update: 2:54 AM

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Insider Activity (6 Months)

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INSIDERS SELLING

Recent Transactions

John M Wall SELL 21500 shares 2026-04-16

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