CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$342.59
3.98 (1.18%)
▲
5d:
-0.59%
30d:
-9.19%
90d:
+1.8%
HOLD
MODERATE Confidence
Analysis Updated: Jul 28, 2026 12:00 AM ET
Earnings: Jul 27, 2026
0d
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:
📊 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
$457.79
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$284.25
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 $342.59, which is considered slightly low relative to its 30-day fair value range of $343.56 to $383.17. From a valuation perspective, the stock is trading at a discount (Forward PE: 36.0) compared to its historical average (43.2). Remarkably, the market is currently pricing in an annual earnings decline of 5.9% 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 $320.07, while resistance sits at $385.30.
Market Sentiment: CDNS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $395.94 (+16.9%). 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 strong uptrend. Immediate support is located at $320.07, while resistance sits at $385.30.
Market Sentiment: CDNS has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $395.94 (+16.9%). 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
SLIGHTLY LOW
Historical Trading Range
$343.56 -
$383.17
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.8%
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 (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($395.94)
Trading Range Analysis
30-Day Trading Range
$343.56 -
$383.17
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$320.07
Resistance Level
$385.30
Current Trend
Strong Uptrend
Technical data as of
Jul 28, 2026
Fundamental Context
Forward P/E (Next Year Est.)
36.01
Wall Street Target
$395.94
(+16.9%)
Revenue Growth (YoY)
18.7%
Earnings Growth (YoY)
23.0%
Profit Margin
21.2%
Valuation Discount vs History
-5.9% cheaper
PE vs Historical
36.0 vs 43.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.9%
(market-implied from PE analysis)
1-Year Target
$318.63
(-6%)
2-Year Target
$299.83
(-12%)
3-Year Target
$282.14
(-17%)
3-Yr Target (if PE normalizes)
(PE: 36→43)
$338.48
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 36.0, Growth: 109.0%)
$1142.81
(+238%)
Base:
(SPY PE: 20.8, Growth: 109.0%)
$660.43
(+95%)
Bear:
(PE: 17.7, Growth: 109.0%)
$561.36
(+66%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (41x PE), but valuation improves significantly next year (36x PE) as earnings recover.
Forward PE: 41.15 | Forward EPS (Implied): $8.23
Bull Case
$408.87
(+21%)
Analyst growth 15.0%, PE expands to 43.2
Base Case
$338.61
(0%)
Market implied 0.0%, PE stable at 41.2
Bear Case
$259.04
(-24%)
Severe decline -15.0%, PE contracts to 37.0
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 36.0 to 43.2
Stabilization Target:
$406.22
(+20.0%)
PE Expansion Potential:
+20.0%
Share & Embed Analysis
Last updated: July 28, 2026 3:28 PM ET
Data refreshes hourly during market hours. Next update: 4:27 PM
Data refreshes hourly during market hours. Next update: 4:27 PM
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Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
1
Buys
6
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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Professional options setups generated by AI based on today's CDNS price and gamma walls.
