CADENCE DESIGN SYS INC (NASDAQ:CDNS) – A Strong Growth Stock with Technical Breakout Potential

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 fundamentals with a bullish chart pattern, making it worth a closer look for growth-oriented investors.

Fundamental Strengths

• Growth: CDNS has shown strong earnings growth, with EPS increasing by 26.64% over the past year and revenue growing by 19.55%. Future estimates suggest continued growth, though at a slightly slower pace.
• Profitability: The company scores a 9/10 in profitability, with high margins (22.19% net margin, 30.60% operating margin) and strong returns on capital.
• Financial Health: With a 7/10 health rating, CDNS maintains solid liquidity (current ratio of 3.07) and manageable debt levels.

Technical Setup

• Bullish Trend: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
• Bull Flag Pattern: The recent pullback after a strong upward move suggests a potential continuation of the uptrend.
• Support & Resistance: Key support lies around $301.69-$309.34, while resistance is near $324.54-$326.82. A breakout above resistance could signal further upside.

For a deeper dive, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.