Cadence Design Systems outshines Synopsys in EDA market, considered enduring quality investment option.

From Yahoo Finance: 2025-06-24 11:50:00

Cadence Design Systems, Inc. (CDNS) shares were trading at $307.2 on June 11th with trailing and forward P/E of 76.56 and 44.44 respectively. Jim Cramer highlighted Aeva Technologies (AEVA) for its recent “Airbus Contract That’s Really Good.” Cadence outshines Synopsys in the EDA market for quality, shareholder alignment, and financial metrics.

Synopsys boasts strong financial health, 11.3% revenue CAGR, and robust margins. However, Cadence Design Systems demonstrates superior capital efficiency, with a 28.6% ROIC and 155.7% cash conversion ratio. Cadence’s disciplined shareholder value creation and execution across key metrics secure its place as an enduring quality investment option for investors.

Cadence Design Systems is not among the 30 Most Popular Stocks Among Hedge Funds, with 59 hedge fund portfolios holding CDNS at the end of the first quarter. While CDNS holds investment potential, other AI stocks may offer higher returns with limited downside risk. Investors seeking an affordable AI stock with potential benefits from Trump tariffs and onshoring can explore further information in a free report.

Read more: Cadence Design Systems, Inc. (CDNS): A Bull Case Theory