Cadence Design Systems (CDNS) Stock: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$316.49
6.84 (2.21%)
â˛
5d:
-0.95%
30d:
-1.71%
90d:
-6.53%
WAIT
LOW Confidence
Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Oct 26, 2026
TODAY
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: CDNS is fairly priced but lacks strong directional signals. At -6.5% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: CDNS is fairly priced but lacks strong directional signals. At -6.5% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$465.81
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$289.23
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 $316.49, which is considered fair relative to its 30-day fair value range of $297.09 to $346.87. From a valuation perspective, the stock is trading at a discount (Forward PE: 33.1) compared to its historical average (40.5). Remarkably, the market is currently pricing in an annual earnings decline of 6.5% 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. Immediate support is located at $305.19, while resistance sits at $354.57.
Market Sentiment: CDNS scores 32/100 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 $406.24 (+28.4%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, CDNS is in a strong downtrend. Immediate support is located at $305.19, while resistance sits at $354.57.
Market Sentiment: CDNS scores 32/100 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 $406.24 (+28.4%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$297.09 -
$346.87
Company Quality Score
36/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
50.0%
Protect Your Profits
Holding CDNS? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- NEUTRAL: Price in fair range
- BEARISH: Weak technical setup (32/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 28.4% below Wall St target ($406.24)
- WARNING: Composite score 36/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$297.09 -
$346.87
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$305.19
Resistance Level
$354.57
Current Trend
Strong Downtrend
Technical data as of
Oct 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
33.08
Wall Street Target
$406.24
(+28.4%)
Revenue Growth (YoY)
24.2%
Earnings Growth (YoY)
125.4%
Profit Margin
23.6%
Valuation Discount vs History
-6.5% cheaper
PE vs Historical
33.1 vs 40.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.5%
(market-implied from PE analysis)
1-Year Target
$295.92
(-7%)
2-Year Target
$276.68
(-13%)
3-Year Target
$258.70
(-18%)
3-Yr Target (if PE normalizes)
(PE: 33â41)
$316.75
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 33.1, Growth: 98.9%)
$1068.15
(+238%)
Base:
(SPY PE: 19.9, Growth: 98.9%)
$641.33
(+103%)
Bear:
(PE: 16.9, Growth: 98.9%)
$545.13
(+72%)
đ
Valuation based on Current Earnings
Forward PE: 31.55 | Forward EPS (Implied): $10.03
Bull Case
$382.16
(+21%)
Analyst growth 15.0%, PE expands to 33.1
Base Case
$316.49
(0%)
Market implied 0.0%, PE stable at 31.6
Bear Case
$242.11
(-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.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 33.1 to 40.5
Stabilization Target:
$387.51
(+22.4%)
PE Expansion Potential:
+22.4%
Share & Embed Analysis
Last updated: October 25, 2026 4:28 AM ET
Data refreshes hourly during market hours. Next update: 5:28 AM
Data refreshes hourly during market hours. Next update: 5:28 AM
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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