Latest news with #CadenceDesign
Yahoo
12 hours ago
- Business
- Yahoo
Cadence Design Systems, Synopsys Jump as US Lifts Software Restrictions on China Exports
Shares of Cadence Design Systems (CDNS) and Synopsys (SNPS) advanced intraday Thursday after the com
Yahoo
15 hours ago
- Business
- Yahoo
Stock Market Today: Stocks jump on bullish jobs report
Stock Market Today: Stocks jump on bullish jobs report originally appeared on TheStreet. Updated: 11:22 a.m. EDT Stocks surged at the open Thursday after the Labor Department reported a surprising gain in payroll employment in its monthly jobs report. Payrolls jumped by 147,000 in June, the report said, much higher than consensus economic estimate of 106,000. The unemployment rate fell slightly from 4.2% in April and May to 4.1% in June. The Standard & Poor's 500 Index, Nasdaq Composite Index and Nasdaq-100 indexes promptly reached 52-week highs after the open on what will be a shortened day of trading. At 10:45 a.m. EDT, the S&P 500 was up 51 points, or 0.8%, to 6,278. All 11 sectors of the S&P 500 were higher, led by tech and financial stocks. Among the leaders were chip-design companies Cadence Design () and Synopsis () , up about 5% each. The Trump administration lifted export controls so they can sell their software to Chinese chip companies. The move is seen as a further sign of de-escalating U.S.-Sino trade tensions. The Nasdaq was up 200 points, or 1%, to 20,594, and the Nasdaq-100 Index added 226 points, or 1%, to 22,862. Not to be outdone, the Dow Jones Industrial Average jumped 343 points, or 0.8%, to 44,825. The blue-chip index is still 249 points under its 52-week high of 45,074, reached on Dec. 4, 2024. Markets will close at 1 p.m. ET today ahead of the July 4 holiday on Friday. U.S. markets will be closed on Friday. The 10-year Treasury yield moved up in early trading to 4.335%, up from 4.284% on Wednesday. Mortgage rates were steady at 6.7%. Meanwhile, crude oil moved moved lower. West Texas Intermediate, the benchmark U.S. crude was off 78 cents to $66.77 per 42-gallon barrel. Brent crude, the global benchmark, was off 59 cents to $68.50 per barrel. AAA said the average price of gasoline on Thursday was $3.162 per gallon. That's down $3.171 on Wednesday and $3.512 a year ago. There is an irony about today's jobs report. The Bureau of Labor Statistics estimated that most of the gains were in state and local government payrolls. State governments added 47,000 workers, the report said. Local governments added another 23,000 jobs. Federal government payrolls fell by 6,000 during the month. Private-sector employment was little changed, with the reporting noting little changes in mining (which includes oil-and-gas employment), construction, manufacturing, wholesale and retail trade, and transportation. Lately, good news is good and bad news is good. In other words, when the news is good for the markets, stocks rise because of the good news. But when the news is bad, like if the news suggests that the economy is slowing, that's also good because it will give the Fed more reason to cut rates. Today, there was good news, and the market rallied. The good news was the jobs report. Today, the Bureau of Labor Statistics released data on the Employment Situation for June. And the news was generally better than expected. Nonfarm payrolls increased by 147,000, much higher than the 106,000 expected. This led to a U.S. unemployment rate of 4.10%, which was lower than the expected 4.3%. Labor force participation was also down, which could be skewing the numbers. Jobs lost by the federal government were picked up by state governments. Health care saw gains, as well. Here's the thing. With employment strong, the Fed has less reason to cut rates, which is what has been pushing stocks higher. Was Powell right? The bond market thinks so. Initial reactions by traders saw stocks rip higher, the S&P adding nearly 20 points, and bonds crater. Since then. stocks have mostly given back their gains, though bonds remain sharply lower. Here's a look at futures: Baristas were busy in Washington D.C., keeping our elected representatives in Congress up all night as they work feverishly to pass Pres. Trump's tax bill. Apparently, they are close to a resolution. We'll keep you posted. Stock Market Today: Stocks jump on bullish jobs report first appeared on TheStreet on Jul 3, 2025 This story was originally reported by TheStreet on Jul 3, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
a day ago
- Business
- Wall Street Journal
U.S. Eases Some Chip Software Curbs on China
The U.S. has lifted some curbs on exports of chip-design software to China, according to two companies that say they are working to restore access to recently restricted products. California-based chip-design software developers Synopsys SNPS 0.25%increase; green up pointing triangle and Cadence Design CDNS 0.48%increase; green up pointing triangle both said they had been told by the U.S. Department of Commerce's Bureau of Industry and Security that recent restrictions on China-bound exports had been lifted.
Yahoo
24-06-2025
- Business
- Yahoo
Cadence Design Systems, Inc. (CDNS): A Bull Case Theory
We came across a bullish thesis on Cadence Design Systems, Inc. (CDNS) on Compound & Fire's Substack. In this article, we will summarize the bulls' thesis on CDNS. Cadence Design Systems, Inc. (CDNS)'s share was trading at $ 307.2 as of 11th June. CDNS's trailing and forward P/E were 76.56 and 44.44 respectively according to Yahoo Finance. A close-up of a LiDAR-on-chip sensor mounted in a consumer-grade electronic device. In the battle for leadership in the electronic design automation (EDA) market, Cadence Design Systems emerges as the clear winner in Compound & Fire's Quick Scan, edging out rival Synopsys not just by metrics, but by the narrative of superior quality and shareholder alignment. Both companies operate in a duopoly, providing critical software and IP for chip design in high-growth areas like AI and automotive. Synopsys performs admirably, with strong financial health, 11.3% revenue CAGR, robust margins, and a solid 19.3% ROIC. However, it narrowly misses the 80% Investment Readiness Score (IRS) threshold, weighed down by elevated stock-based compensation at 11.3% of revenue and tepid insider ownership of 0.6%. In contrast, Cadence scores an impressive 82%, driven by exceptional capital efficiency—its 28.6% ROIC and 155.7% cash conversion ratio (OCF/Net Income) underscore its ability to turn profits into cash at a rarefied level. With a more reasonable 8.4% in stock-based compensation and a decade-long reduction of 12.3% in share count, Cadence also demonstrates disciplined shareholder value creation. While both firms carry net cash, Cadence's consistent outperformance in margin structure, cash flow quality, and capital returns paints a clearer picture of a durable compounder. Despite low insider ownership (0.3%), Cadence's superior execution across key metrics secures its place on the Compound & Fire shortlist—a notable accomplishment in a tightly contested space. Synopsys, though still a high-quality business, falls just short of inclusion. For investors seeking enduring quality with proven financial stewardship, Cadence Design Systems makes a compelling case. Previously, we highlighted a bullish thesis on Synopsys (SNPS), emphasizing its indispensable role in chip design through best-in-class EDA tools and IP, high switching costs, and strong relationships with semiconductor giants like Nvidia and AMD. A contrasting view from Compound & Fire favors Cadence Design Systems (CDNS), not for market position, which it shares in SNPS's duopoly, but for superior capital efficiency, cash flow quality, and disciplined shareholder returns. While Synopsys excels in innovation and industry depth, Cadence's exceptional ROIC and shareholder alignment give it the edge for investors prioritizing financial durability in the EDA space. Cadence Design Systems, Inc. (CDNS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held CDNS at the end of the first quarter which was 59 in the previous quarter. While we acknowledge the risk and potential of CDNS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
22-06-2025
- Business
- Yahoo
Returns On Capital At Cadence Design Systems (NASDAQ:CDNS) Have Stalled
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. That's why when we briefly looked at Cadence Design Systems' (NASDAQ:CDNS) ROCE trend, we were pretty happy with what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Cadence Design Systems: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = US$1.5b ÷ (US$9.0b - US$1.3b) (Based on the trailing twelve months to March 2025). Thus, Cadence Design Systems has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Software industry average of 9.5% it's much better. Check out our latest analysis for Cadence Design Systems Above you can see how the current ROCE for Cadence Design Systems compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Cadence Design Systems . While the returns on capital are good, they haven't moved much. The company has employed 180% more capital in the last five years, and the returns on that capital have remained stable at 19%. Since 19% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. On a side note, Cadence Design Systems has done well to reduce current liabilities to 14% of total assets over the last five years. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously. In the end, Cadence Design Systems has proven its ability to adequately reinvest capital at good rates of return. On top of that, the stock has rewarded shareholders with a remarkable 215% return to those who've held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. Cadence Design Systems could be trading at an attractive price in other respects, so you might find our on our platform quite valuable. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
