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Cadence Design Systems, Inc.

CDNS · Technology · · USD
292.70 USD
0.00 (-3.99%)
● Updated 2026-09-07 22:03 Saudi Time ↻ Refresh
Short-term Mid-term Long-term

Fahodi Score SELL Short-term (Swing)

42
/ 100
Technical 40
Trend & RS 30
Momentum 34
Fundamental (0%) 89
Macro 64
Liquidity 73
ComponentScoreWeight
Technical 40.0 40%
Trend & RS 30.3 20%
Momentum 34.1 20%
Fundamental 88.9 0%
Macro 64.4 15%
Liquidity 73.4 5%

Trade Setup

Entry 292.70
Stop Loss 267.68 (8.6%)
Target 1 (1:1) 317.72 (+8.6%)
Target 2 (2:1) 342.74 (+17.1%)
ATR(14) 12.51 (4.3%)
Risk per Share 25.02
Reward:Risk 2:1

ATR-based levels. Adjust for support/resistance zones.

Factor Profile

Factor Score Z Bar
Value 0.0 -2.00
Momentum 31.0 -0.76
Quality 56.4 +0.26
Composite 29.1

Quality Scores

Piotroski F-Score 7 /9 — Strong
✓ ✓ ✗ ✗ ✓ ✓ ✓ ✓ ✓
1. Positive Net Income 2. Positive Roa 3. Positive Cfo 4. Quality Earnings 5. Lower Leverage 6. Higher Liquidity 7. No Dilution 8. Higher Gross Margin 9. Higher Asset Turnover
Altman Z-Score 20.75 — Safe Zone
Distress <1.81Grey 1.81–2.99>2.99 Safe

Valuation vs Peers Overvalued

MetricStockSectorvs Peers
P/E Ratio 58.2 28.0 +108% above
P/B Ratio 11.8 6.0 Above

Comparing against Technology median multiples.

Trading at a premium to sector peers — verify growth justifies premium.

Intrinsic Value (DCF) Significantly Overvalued

Intrinsic Value
152.16
vs
Market Price
292.70
Upside
-48.0%
Margin of Safety -92.4%
Stage 1 PV (5yr FCF)8,337,585,485
Terminal Value PV33,565,789,549
Total Enterprise Value41,903,375,034

Assumptions

Base FCF1,108,181,432
Growth Rate (5yr)24.2%
Terminal Growth2.5%
Discount Rate (WACC)9.0%

2-stage DCF: 5yr projected FCF + Gordon Growth terminal value. Estimates only — adjust growth and WACC for your own assumptions.

Position Sizing — Kelly Criterion

4.5%
Recommended Size
26.54%
Full Kelly
13.27%
Half Kelly
5.0%
Max Cap (Moderate)

Kelly inputs derived from quant score 42/100. Estimated win rate 53%, avg win 7.5%, avg loss 4.2%. Position was capped at the moderate risk maximum. This is analytical output, not a recommendation to trade.

BEAR Regime: BEAR (20% confidence) — position size reduced 10%

Signal Summary SELL

2
Bullish Signals
3
Bearish Signals
31.05
RSI(14)
-8.427
MACD

Relative Strength (RS) WEAK RS

13
/ 99
RS Rating
O'Neil filter: <80
RS vs SPY ↓ FALLING (-26.9% vs SPY 3M)
RS vs Sector UNDERPERFORMING (Technology)
RS New High No (62d since high)
Sector Outperformance -16.0% (3M)
RS Line — stock / SPY (90 bars)
← older newer →
RS vs SPY 50-day SMA of RS
WEAK RS: Underperformer — the stock is lagging the market. Avoid until RS trend reverses upward.

Technical Indicators

IndicatorValueSignal
Rsi 31.05 NEUTRAL
Macd -8.427 BEARISH
Ma Cross 341.64 / 327.13 GOLDEN CROSS
Trend Short BELOW SMA50
Trend Long BELOW SMA200
Bollinger LOWER BAND
Volume 1.88x HIGH

Key Levels

LevelPrice
52-Week High416.69
Bollinger Upper348.76
SMA(200)327.13
SMA(50)341.64
SMA(20)322.26
Current Price292.70
Bollinger Lower295.76
52-Week Low262.75
ATR(14)12.51

Advanced Technical Analysis

Click to expand

Wyckoff Phase & Volume Spread Analysis

Wyckoff Phase

MARKDOWN Confidence
100%
Acc: 0.0  |  Dist: 0.0  |  Markup: 0.0  |  Markdown: 2.0

Volume Spread Analysis (last 5 bars)

DateSignalVolDescription
2026-08-31 Normal 0.72x Normal bar — no special VSA pattern
2026-09-01 Normal 1.02x Normal bar — no special VSA pattern
2026-09-02 Normal 1.14x Normal bar — no special VSA pattern
2026-09-03 Normal 0.97x Normal bar — no special VSA pattern
2026-09-04 Normal 1.88x Normal bar — no special VSA pattern

Ichimoku Cloud BEARISH

LineValueStatus
Tenkan-sen (9) 317.81 Below Kijun
Kijun-sen (26) 318.50 Base line
Senkou A 318.16 Leading span A
Senkou B 339.45 Leading span B
Cloud 318.16 – 339.45 Bearish (Red)
Price vs Cloud 292.70 Below Cloud
Chikou Span 340.02 Bearish
Alignment Score 0/4 BEARISH

TTM Squeeze & Divergences

TTM Squeeze

SQUEEZE OFF No squeeze Momentum: BEARISH
BB: 295.76 – 348.76  |  KC: 305.74 – 338.79

Divergences (last 60 bars)

TypeIndicatorBars AgoStrength
Regular Bullish RSI 18
Hidden Bearish RSI 24

Anchored VWAP

VWAP: 329.17 Anchor: 2026-02-03 (52w Low) BELOW AVWAP -11.1%

Heikin-Ashi Trend

BEARISH Full data via /api/advanced/CDNS

Valuation

MetricValue
Market Cap80.61B
P/E (TTM)58.19
Forward P/EN/A
P/B11.75
EPS5.03

Financial Health

MetricValue
Revenue Growth24.2%
Profit Margin23.6%
ROE23.2%
Debt/Equity38.66
Current Ratio1.74
Dividend YieldN/A
Payout RatioN/A
Beta1.14

Trading Data

292.70
Open
292.70
Day High
292.70
Day Low
4.23M
Volume (1.8x avg)

Recent News (8)

Wall Street Bulls Look Optimistic About Cadence (CDNS): Should You Buy?
Zacks · 2026-09-07
Cadence Design Systems (CDNS) Stock Still Looks Overvalued Despite AI Chip Demand
Simply Wall St. · 2026-09-05
Cadence Design Systems (CDNS) Following PCIe 6.0 Progress Has Fair Value Back In Focus
Simply Wall St. · 2026-09-05
What Sets Cadence Design Systems (CDNS) Apart After Its PCIe 6.0 Milestone?
Simply Wall St. · 2026-09-04
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24/7 Wall St. · 2026-09-04
Synopsys' Core Engine Grew Far Slower Than Its Revenue
Trefis · 2026-09-03
How Is Cadence Design Systems’ Stock Performance Compared to Other Application Software Stocks
Barchart · 2026-09-03
2 S&P 500 Stocks for Long-Term Investors and 1 We Turn Down
StockStory · 2026-09-02

Price Chart (90 Days)

Candlesticks (green=up, red=down) SMA 20 SMA 50 Bollinger Bands (upper/lower) Volume (green=buying, red=selling)
Powered by Fahodi Methodology. This is analytical output, not financial advice. Always do your own due diligence.  ·  Pipeline status  ·  Data: —