CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$379.06
-9.98 (-2.57%)
▼
5d:
-3.91%
30d:
+5.75%
90d:
+29.58%
BUY
MODERATE Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 27, 2026
Smart Money Accumulation
None View Scanner →
Strength: 7.8/10
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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 2.8% decline. Moderate conviction.
💡 BUY OPPORTUNITY: CDNS shows positive signals but monitor for confirmation. Market pricing in 2.8% 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 $379.06, which is considered fair relative to its 30-day fair value range of $361.08 to $401.42. The stock's valuation (Forward PE: 40.3) is in line with its historical norms (43.9). Remarkably, the market is currently pricing in an annual earnings decline of 2.8% 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. The price is currently testing key support at $375.94. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), 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. The price is currently testing key support at $375.94. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), 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
FAIR
Historical Trading Range
$361.08 -
$401.42
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
67.6%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($386.78)
Trading Range Analysis
30-Day Trading Range
$361.08 -
$401.42
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$375.94
Resistance Level
$406.67
Current Trend
Strong Uptrend
Technical data as of
Jun 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
40.33
Wall Street Target
$386.78
(+2.0%)
Revenue Growth (YoY)
18.7%
Earnings Growth (YoY)
23.0%
Profit Margin
21.2%
Valuation Discount vs History
-2.8% cheaper
PE vs Historical
40.3 vs 43.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-2.8%
(market-implied from PE analysis)
1-Year Target
$368.45
(-3%)
2-Year Target
$358.13
(-6%)
3-Year Target
$348.10
(-8%)
3-Yr Target (if PE normalizes)
(PE: 40→44)
$378.95
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 40.3, Growth: 108.9%)
$1279.33
(+238%)
Base:
(SPY PE: 21.8, Growth: 108.9%)
$690.96
(+82%)
Bear:
(PE: 18.5, Growth: 108.9%)
$587.31
(+55%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (49x PE), but valuation improves significantly next year (40x PE) as earnings recover.
Forward PE: 49.02 | Forward EPS (Implied): $7.94
Bull Case
$469.77
(+21%)
Analyst growth 15.0%, PE expands to 51.5
Base Case
$389.04
(0%)
Market implied 0.0%, PE stable at 49.0
Bear Case
$297.62
(-24%)
Severe decline -15.0%, PE contracts to 44.1
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 40.3 to 43.9
Stabilization Target:
$412.65
(+8.9%)
PE Expansion Potential:
+8.9%
Share & Embed Analysis
Last updated: June 23, 2026 5:40 PM ET
Data refreshes hourly during market hours. Next update: 6:40 PM
Data refreshes hourly during market hours. Next update: 6:40 PM
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
2
Buys
9
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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