CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$319.02
5.43 (1.73%)
▲
5d:
-1.79%
30d:
-3.46%
90d:
-11.0%
HOLD
MODERATE Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Jul 27, 2026
0d
Smart Money Accumulation
Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →
Signal fired Aug 12, 2026 at $323.13 · last confirmed Aug 20, 2026
Strength: 6.0/10
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: CDNS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: CDNS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$464.23
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$288.25
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 $319.02, which is considered oversold relative to its 30-day fair value range of $319.72 to $352.84. From a valuation perspective, the stock is trading at a discount (Forward PE: 33.5) compared to its historical average (42.3). Remarkably, the market is currently pricing in an annual earnings decline of 7.5% 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 uptrend. The price is currently testing key support at $311.47. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CDNS scores 31/100 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 $403.94 (+26.6%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CDNS is in a uptrend. The price is currently testing key support at $311.47. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: CDNS scores 31/100 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 $403.94 (+26.6%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$319.72 -
$352.84
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
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
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (31/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 26.6% below Wall St target ($403.94)
Trading Range Analysis
30-Day Trading Range
$319.72 -
$352.84
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$311.47
Resistance Level
$342.03
Current Trend
Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
33.46
Wall Street Target
$403.94
(+26.6%)
Revenue Growth (YoY)
24.2%
Earnings Growth (YoY)
125.4%
Profit Margin
23.6%
Valuation Discount vs History
-7.5% cheaper
PE vs Historical
33.5 vs 42.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-7.5%
(market-implied from PE analysis)
1-Year Target
$295.09
(-8%)
2-Year Target
$272.96
(-14%)
3-Year Target
$252.49
(-21%)
3-Yr Target (if PE normalizes)
(PE: 33→42)
$319.24
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 33.5, Growth: 98.6%)
$1076.69
(+238%)
Base:
(SPY PE: 20.1, Growth: 98.6%)
$645.91
(+103%)
Bear:
(PE: 17.1, Growth: 98.6%)
$549.02
(+72%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (39x PE), but valuation improves significantly next year (33x PE) as earnings recover.
Forward PE: 38.91 | Forward EPS (Implied): $8.20
Bull Case
$385.22
(+21%)
Analyst growth 15.0%, PE expands to 40.9
Base Case
$319.02
(0%)
Market implied 0.0%, PE stable at 38.9
Bear Case
$244.05
(-24%)
Severe decline -15.0%, PE contracts to 35.0
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 33.5 to 42.3
Stabilization Target:
$403.36
(+26.4%)
PE Expansion Potential:
+26.4%
Share & Embed Analysis
Last updated: August 23, 2026 11:24 AM ET
Data refreshes hourly during market hours. Next update: 12:24 PM
Data refreshes hourly during market hours. Next update: 12:24 PM
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| Ticker | Score | Recommendation | Change % |
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
4
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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Advanced CDNS Option Strategies
Professional options setups generated by AI based on today's CDNS price and gamma walls.
