On Dec 26, we issued an updated research report on Citrix Systems, Inc. . The stock has been downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). Going by the Zacks proven model, the Sell-rated stocks (#4 or 5) are likely to underperform the broader market over the next one-three months.
Reasons Behind the Downgrade
High costs are limiting the company’s bottom-line growth and the fourth quarter is likely to be no different in this regard. Additionally, declining revenues from products also pose a severe challenge to the company.
Moreover, frequent management changes do not bode well for the company and have potential to shake investors’ confidence in the stock. Notably, in July, the company made a change at its helm, replacing Kirill Tatarinov with David J. Henshall as its chief executive officer (CEO). Henshall’s appointment implies that Citrix has had four CEOs in less than two years.
The company’s results are also liable to be affected by foreign exchange movements as it continues to foray into non-U.S. markets.
Shares of Citrix Systems have underperformed the industry it belongs to in a year. The stock has declined 3.3% against the industry’s gain of 33.9% over the same period.
The company’s VGM Score of C also raises concerns. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of all these three scores.
Key Picks
Some better-ranked stocks in the same space are Nuance Communications, Inc. , Rosetta Stone and ANSYS, Inc. (ANSS - Free Report) . While Nuance Communications and Rosetta Stone sport a Zacks Rank #1 (Strong Buy), ANSYS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Nuance Communications, Rosetta Stone and ANSYS have gained more than 10%, 43% and 58%, respectively, in a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Dec 26, we issued an updated research report on Citrix Systems, Inc. . The stock has been downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). Going by the Zacks proven model, the Sell-rated stocks (#4 or 5) are likely to underperform the broader market over the next one-three months.
Reasons Behind the Downgrade
High costs are limiting the company’s bottom-line growth and the fourth quarter is likely to be no different in this regard. Additionally, declining revenues from products also pose a severe challenge to the company.
Moreover, frequent management changes do not bode well for the company and have potential to shake investors’ confidence in the stock. Notably, in July, the company made a change at its helm, replacing Kirill Tatarinov with David J. Henshall as its chief executive officer (CEO). Henshall’s appointment implies that Citrix has had four CEOs in less than two years.
The company’s results are also liable to be affected by foreign exchange movements as it continues to foray into non-U.S. markets.
Shares of Citrix Systems have underperformed the industry it belongs to in a year. The stock has declined 3.3% against the industry’s gain of 33.9% over the same period.
The company’s VGM Score of C also raises concerns. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of all these three scores.
Key Picks
Some better-ranked stocks in the same space are Nuance Communications, Inc. , Rosetta Stone and ANSYS, Inc. (ANSS - Free Report) . While Nuance Communications and Rosetta Stone sport a Zacks Rank #1 (Strong Buy), ANSYS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Nuance Communications, Rosetta Stone and ANSYS have gained more than 10%, 43% and 58%, respectively, in a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ANSS - FREE