CDNS · NASDAQ · STOCK
Cadence Design Systems (CDNS) Stock Analysis
$352.86
52W $262.75 – $416.69
56/100
$97.17B
69.7
1.13
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is CDNS Bullish or Bearish?
Bullish.
Innellis AI committee rates Cadence Design Systems (CDNS) Buy with a composite score of 56/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +18.54 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -1.46 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 36.0% yoy. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 22.9% shows genuine earnings power backing the valuation — Value
- EPS growing 36.0% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- P/E of 69.7 is expensive by classic value standards — Value
- Price-to-book of 15.5x prices in significant intangible value — Value
- RSI at 70 is in overbought territory — Technical
- Bollinger bandwidth of 37.8% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
56/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 65%
of 287 Technology peers
Value Analyst
neutral
49
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 22.9% shows genuine earnings power backing the valuation
− P/E of 69.7 is expensive by classic value standards
Growth Analyst
bullish
79
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 36.0% YoY
Technical Analyst
neutral
54
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− RSI at 70 is in overbought territory
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 37.8% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 57.7 to 56.5.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
- Analyst(s) changed stance: Technical Analyst.
Analyst-level changes:
- Technical Analyst: stance bullish->neutral; score 61->54 (-8); +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
70.4
Overbought
MACD Histogram
4.725
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Lh Ll
Support
$327.20
Resistance
$357.31
Bollinger %B
0.77
Inside Bands
Price vs Moving Averages
EMA 9
$345.46
Above
EMA 21
$331.15
Above
EMA 50
$327.39
Above
EMA 200
$329.61
Above
Fundamental Analysis
Valuation
18
Growth
83
Profitability
100
Financial Health
89
Cash Flow
70
Valuation
P/E Ratio
69.7×
P/B Ratio
14.09×
PEG Ratio
1.94
Dividend Yield
0.00%
52W High
$416.69
52W Low
$262.75
Quality & Growth
ROE
2025.7%
ROA
1092.2%
Gross Margin
8587.1%
Operating Margin
3082.3%
Revenue Growth YoY
—
Debt / Equity
0.36
AI Fundamental Assessment
P/E ratio of 69.7 (rich relative to a 15-40x range); Price-to-book of 14.1x; PEG ratio of 1.9 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 20.3%; Return on assets of 10.9%; Net margin of 23.6%; Gross margin of 85.9%; Current ratio of 1.74 (healthy short-term liquidity); Debt-to-equity of 0.36; Free cash flow per share is positive (6.13); Most recent quarter beat estimates by 0.7%; 5 consecutive earnings beats; EPS growth accelerating (-1.5% -> +7.7% QoQ); Average YoY EPS growth of 27.9%; Analyst estimates rising over recent quarters
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