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Citrix Systems (CTXS) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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Citrix Systems (CTXS) closed the most recent trading day at $131.82, moving +0.72% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 1.94%.

Coming into today, shares of the cloud computing company had gained 14.67% in the past month. In that same time, the Computer and Technology sector gained 5.01%, while the S&P 500 gained 5.72%.

Investors will be hoping for strength from CTXS as it approaches its next earnings release. The company is expected to report EPS of $1.32, down 22.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $778.90 million, down 3.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.96 per share and revenue of $3.20 billion, which would represent changes of +4.75% and +6.45%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CTXS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CTXS is currently a Zacks Rank #3 (Hold).

Looking at its valuation, CTXS is holding a Forward P/E ratio of 21.96. For comparison, its industry has an average Forward P/E of 33.41, which means CTXS is trading at a discount to the group.

It is also worth noting that CTXS currently has a PEG ratio of 2.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Software stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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