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

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Citrix Systems (CTXS - Free Report) closed at $127.87 in the latest trading session, marking a +0.44% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the cloud computing company had gained 8.93% in the past month. In that same time, the Computer and Technology sector gained 12.9%, while the S&P 500 gained 11.09%.

CTXS will be looking to display strength as it nears its next earnings release. On that day, CTXS is projected to report earnings of $1.32 per share, which would represent a year-over-year decline of 22.81%. Meanwhile, our latest consensus estimate is calling for revenue of $778.90 million, down 3.82% from the prior-year quarter.

CTXS's full-year Zacks Consensus Estimates are calling for earnings of $5.96 per share and revenue of $3.20 billion. These results would represent year-over-year changes of +4.75% and +6.45%, respectively.

It is also important to note the recent changes to analyst estimates for CTXS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CTXS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, CTXS currently has a Forward P/E ratio of 21.36. This represents a discount compared to its industry's average Forward P/E of 32.31.

Also, we should mention that CTXS has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.53 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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