CADENCE DESIGN SYS INC (NASDAQ:CDNS) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look.
Fundamental Strengths
- Growth: CDNS has demonstrated strong revenue and earnings growth, with EPS increasing by 26.64% over the past year and revenue up 19.55%. Future growth expectations remain healthy, with projected annual revenue growth of 9.79%.
- Profitability: The company boasts high margins, including a 30.60% operating margin and 85.86% gross margin, outperforming most peers in the software industry.
- Financial Health: CDNS maintains a solid balance sheet with a strong current ratio of 3.07 and manageable debt levels.
Technical Setup
- The stock is consolidating after a recent pullback, presenting a potential entry point.
- A Pocket Pivot signal was recently observed, indicating accumulation.
- Key support levels are found near $284.49 - $292.71, providing a potential stop-loss zone.
- The long-term trend remains positive, though short-term momentum is neutral.
Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria.
For a deeper dive, review the full fundamental report and technical analysis.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
