CDNS Stock Analysis: Buy, Sell, or Hold?
CDNS - Cadence Design Systems
$296.36
-6.31 (-2.08%)
▼
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 17, 2026
16d
Get Alerted When CDNS Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
1 traders called CDNS this week
0% bullish • 1 bearish
0% bullish • 1 bearish
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
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
$74.62
Based on -10.3% avg growth
INTRINSIC VALUE TODAY
$46.33
Trading above fair value
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 $296.36, which is considered oversold relative to its 30-day fair value range of $308.72 to $322.72. The stock's valuation (Forward PE: 57.0) is in line with its historical norms (59.2). Remarkably, the market is currently pricing in an annual earnings decline of 1.3% over the next few years. This pessimistic expectation contrasts with the company's recent 20.7% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CDNS is in a strong downtrend. The price is currently testing key support at $293.44. A bounce from this level would confirm strength, while a break below could signal further downside.
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 $381.32 (+26.0%). 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 downtrend. The price is currently testing key support at $293.44. A bounce from this level would confirm strength, while a break below could signal further downside.
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 $381.32 (+26.0%). 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
OVERSOLD
Fair Price Range
$308.72 -
$322.72
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
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 26.0% below Wall St target ($381.32)
- CAUTION: 5-day price weakness (-6.9%) - monitor closely
Fair Price Analysis
30-Day Fair Range
$308.72 -
$322.72
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$293.44
Resistance Level
$325.19
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
57.02
Wall Street Target
$381.32
(+26.0%)
Revenue Growth (YoY)
10.1%
Earnings Growth (YoY)
20.7%
Profit Margin
20.3%
Valuation Discount vs History
-1.3% cheaper
PE vs Historical
57.0 vs 59.2
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.3%
(market-implied from PE analysis)
1-Year Target
$298.74
(-1%)
2-Year Target
$294.85
(-3%)
3-Year Target
$291.02
(-4%)
3-Yr Target (if PE normalizes)
(PE: 57→59)
$302.13
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 57.0, Growth: -24.6%)
$220.65
(+-27%)
Base:
(SPY PE: 22.3, Growth: -24.6%)
$86.29
(-72%)
Bear:
(PE: 19.0, Growth: -24.6%)
$73.34
(-76%)
📈
Valuation based on Current Earnings
Forward PE: 40.16 | Forward EPS (Implied): $7.38
Bull Case
$357.85
(+21%)
Analyst growth 15.0%, PE expands to 42.2
Base Case
$296.36
(0%)
Market implied 0.0%, PE stable at 40.2
Bear Case
$226.72
(-24%)
Severe decline -15.0%, PE contracts to 36.1
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 57.0 to 59.2
Stabilization Target:
$314.22
(+3.8%)
PE Expansion Potential:
+3.8%
Last updated: January 30, 2026 10:05 PM ET
Data refreshes hourly during market hours. Next update: 11:05 PM
Data refreshes hourly during market hours. Next update: 11:05 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is CDNS showing a specific setup today?
Insider Activity (6 Months)
1
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
Paul Cunningham
SELL
1000 shares
2025-10-01
John M Wall
SELL
7500 shares
2025-09-30
Val T. Hoyle
SELL
2025-09-23
Top Rated Software - Application Stocks
Top-rated stocks in Software - Application by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
NOW
ServiceNow Inc |
STRONG BUY
47 analysts |
$208 | 56 HOLD |
|
TEAM
Atlassian Corp Plc |
STRONG BUY
33 analysts |
$235 | 57 HOLD |
|
HUBS
HubSpot Inc |
STRONG BUY
36 analysts |
$563 | 49 HOLD |
|
DDOG
Datadog Inc |
STRONG BUY
46 analysts |
$198 | 55 HOLD |
|
INTU
Intuit Inc |
STRONG BUY
34 analysts |
$788 | 48 HOLD |
Advanced CDNS Option Strategies
Professional options setups generated by AI based on today's CDNS price and gamma walls.
