Should You Expect Sustainable Growth from Cadence Design Systems (CDNS) in Coming Years?

Renaissance Investment Management, an investment management company, released its “Large Cap Growth Strategy” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.46% (net) compared to a -3.60% return for the Russell 1000 Growth Index and -4.88% return for the S&P 500 Index. The focus on high-quality stocks led the strategy to outperform the indexes in the quarter. The Consumer Discretionary sector significantly contributed to the strategy’s performance while the Technology sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Investment highlighted stocks like Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q3 2022 investor letter. Headquartered in San Jose, California, Cadence Design Systems, Inc. (NASDAQ:CDNS) is a software and engineering company. On December 27, 2022, Cadence Design Systems, Inc. (NASDAQ:CDNS) stock closed at $160.05 per share. One-month return of Cadence Design Systems, Inc. (NASDAQ:CDNS) was -6.97%, and its shares lost 16.49% of their value over the last 52 weeks. Cadence Design Systems, Inc. (NASDAQ:CDNS) has a market capitalization of $43.904 billion.

Renaissance Investment made the following comment about Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q3 2022 investor letter:

“Cadence Design Systems, Inc. (NASDAQ:CDNS) was another contributor. The company reported strong operating results with broad-based strength from its semiconductor customers who are migrating to next-generation manufacturing nodes. We believe the multi-year investment cycle for semiconductor design spending should drive sustainable double-digit growth well into next year.”

Cadence Design Systems, Inc. (NASDAQ:CDNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Cadence Design Systems, Inc. (NASDAQ:CDNS) at the end of the third quarter, which was 39 in the previous quarter.

We discussed Cadence Design Systems, Inc. (NASDAQ:CDNS) in another article and shared the list of tech stocks with the biggest upside. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.