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Cadence Design Systems (CDNS) Stock Rating & Analysis

MELANY's data-driven read on Cadence Design Systems · Services-Prepackaged Software.

58/100
Very Promising
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Live price

Cadence Design Systems provides electronic design automation (EDA) software, intellectual property, and system design and analysis products. Its EDA software automates and assists the chip design process, supporting design accuracy, productivity, and complexity through a full-flow end-to-end solution. Cadence also offers a portfolio of design IP along with system design and analysis products that enable system-level analysis and verification.

Rating as of 2026-08-18 · this is a dated snapshot, and the live rating is free in the app. Price above updates in real time.

Why CDNS scores 58/100

MELANY scores Cadence Design Systems 58/100 by weighing eight factors. Here is how CDNS breaks down.

Valuation26/100

Whether the price looks cheap or expensive against earnings, growth, and peers.

  • Forward P/E 33.2x, earnings growth accelerating
Business quality81/100

Margins, returns on capital, and balance-sheet strength.

  • Gross margin 86%
  • ROE 22%
Price momentum57/100

Direction and relative strength of the recent share-price trend.

  • 50-day MA above 200-day (golden cross zone)
Earnings track record75/100

History of beating or missing estimates, and where estimates are heading.

  • Beat EPS estimates 4 of last 4 quarters
Analyst sentiment79/100

What Wall Street price targets and revisions are signalling.

  • Analyst targets 27% upside
Catalyst setup36/100

Near-term events that could move the stock.

Risk-adjusted profile65/100

Upside weighed against volatility and drawdown risk.

Macro fit50/100

How the current rate and market regime suits this kind of company.

Key risks for CDNS

Sector and theme context

Cadence Design Systems sits in the AI infrastructure (semis) theme, which MELANY currently rates 86/100 for strength. Theme strength feeds CDNS's momentum and catalyst factors above.

CDNS trade plan (members only)

MELANY has a full position plan for Cadence Design Systems: a smart entry zone, an alert level, position sizing, and quarterly review triggers. It unlocks free when you create an account.

Entry zoneLocked
Alert levelLocked
Position sizingLocked
Review triggersLocked

How MELANY rates CDNS

MELANY is a rules-based engine that scores every stock from 0 to 100 across eight weighted factors, then re-scores as new price, earnings, and fundamental data arrive. Cadence Design Systems's 58/100 reflects mature factor weighting for its profile. Position framework managed by score-based check-ins, not a fixed holding period.

Ratings are algorithmic and change with the data. They are research and education, not personalized investment advice.

Frequently asked questions about CDNS

Is Cadence Design Systems (CDNS) a buy?

As of 2026-08-18, MELANY rated Cadence Design Systems Very Promising with a composite score of 58/100. That is a dated snapshot, not the live rating, and it is an algorithmic reading built from eight factors rather than personalized investment advice. Review the factor breakdown above and the disclaimer below before making any decision.

What is Cadence Design Systems's MELANY score?

Cadence Design Systems (CDNS) has a MELANY composite score of 58/100, combining valuation, business quality, price momentum, earnings track record, analyst sentiment, catalyst setup, risk-adjusted profile, and macro fit.

How is the CDNS stock rating calculated?

MELANY scores CDNS from 0 to 100 across eight weighted factors using live market and fundamental data, then refreshes the rating automatically as new data arrives.

Should I buy Cadence Design Systems stock?

That decision is yours; Market Eyes Live does not give buy or sell advice. What the data says: MELANY rates Cadence Design Systems (CDNS) Very Promising with a composite of 58/100 as of 2026-08-18. The factor breakdown above shows what is driving that, which is a better basis for a decision than any one-word verdict.

What is the CDNS stock price forecast?

MELANY does not publish price targets or forecasts for CDNS. Predicting a future price is exactly the kind of false precision the confidence framework avoids. Instead it scores today's setup, 58/100 across eight factors for Cadence Design Systems, and re-scores automatically as new price, earnings, and fundamental data arrive.

Is CDNS stock overvalued or undervalued?

MELANY's valuation factor currently reads 26/100 for Cadence Design Systems, where a higher score means the price looks more attractive against earnings, growth, and peers. Scores in the 70s and above read as attractively priced, the mid range as roughly fair, and low scores as stretched. The factor breakdown above shows what drives CDNS's read.

What price should I buy CDNS at?

Rather than chasing the current price, MELANY computes a smart entry zone for CDNS: the price area where risk and reward actually favor a new position, plus an alert level and position sizing. The exact levels unlock free when you create a Market Eyes Live account.

What are the risks of buying CDNS stock?

The top risks MELANY currently flags for Cadence Design Systems: Performance partly driven by AI infrastructure (semis), rotation away from this theme would hurt. The rating on this page already weighs these against the bullish factors; see the risk-adjusted profile score in the breakdown above.

Is Cadence Design Systems a good long-term investment?

For long-term durability the two factors that matter most are business quality, which MELANY scores 81/100 for Cadence Design Systems, and earnings track record, at 75/100. The 58/100 composite blends those with six shorter-horizon factors. Durable quality at a fair price is the long-term case to test; this is research, not personalized investment advice.

Will CDNS stock go up?

Nobody can promise a stock's direction, and Market Eyes Live does not predict prices. The measurable part: MELANY's price momentum factor reads 57/100 for CDNS right now, and the catalyst setup factor tracks whether near-term events could move it. Both re-score automatically as the data changes.

How current is this CDNS rating?

The rating on this page is a snapshot of MELANY's read as of 2026-08-18. The price shown updates live, but the score is not recomputed on this page. MELANY re-scores CDNS continuously as new price, earnings, and fundamental data arrive, and that current rating is free in the app.

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CDNS's entry zone, live alerts, and full trade plan are free either way. The app is our flagship.