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Citrix Systems (CTXS) Hits Fresh Highs: Is There Still Room to Run?
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Have you been paying attention to shares of Citrix Systems ? Shares have been on the move with the stock up 14% over the past month. CTXS hit a new 52-week high of $104.88 in the previous session. Citrix Systems has gained 19% since the start of the year compared to the 2.9% move for the Computer and Technology sector and the 10% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Citrix Systems reported EPS of $1.29 versus the Zacks Consensus Estimate of $1.05 while it beat the consensus revenue estimate by 3.17%.
For the current fiscal year, Citrix Systems is expected to post earnings of $5.3 per share on $2.9 billion in revenues. This represents a 9.28% change in EPS on a 2.82% change in revenues. For the next fiscal year, the company is expected to earn $5.84 per share on $3.01 billion in revenues. This represents a year-over-year change of 10.27% and 3.67%, respectively.
Valuation Metrics
Citrix Systems may be at a 52-week high right now, but what might the future hold for CTXS? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Citrix Systems has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 19.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 18.8X versus its peer group's average of 23X. Additionally, the stock has a PEG ratio of 2.18. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Citrix Systems currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Citrix Systems passes the test. Thus, it seems as though CTXS shares could still be poised for more gains ahead.
How Does Citrix Systems Stack Up to the Competition?
Shares of Citrix Systems have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including EPAM Systems (EPAM - Free Report) , CACI International (CACI - Free Report) , and Baidu (BIDU - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CTXS, even beyond its own solid fundamental situation.
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Citrix Systems (CTXS) Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Citrix Systems ? Shares have been on the move with the stock up 14% over the past month. CTXS hit a new 52-week high of $104.88 in the previous session. Citrix Systems has gained 19% since the start of the year compared to the 2.9% move for the Computer and Technology sector and the 10% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 25, 2018, Citrix Systems reported EPS of $1.29 versus the Zacks Consensus Estimate of $1.05 while it beat the consensus revenue estimate by 3.17%.
For the current fiscal year, Citrix Systems is expected to post earnings of $5.3 per share on $2.9 billion in revenues. This represents a 9.28% change in EPS on a 2.82% change in revenues. For the next fiscal year, the company is expected to earn $5.84 per share on $3.01 billion in revenues. This represents a year-over-year change of 10.27% and 3.67%, respectively.
Valuation Metrics
Citrix Systems may be at a 52-week high right now, but what might the future hold for CTXS? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Citrix Systems has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 19.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 18.8X versus its peer group's average of 23X. Additionally, the stock has a PEG ratio of 2.18. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Citrix Systems, Inc. Price and Consensus
Citrix Systems, Inc. Price and Consensus | Citrix Systems, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Citrix Systems currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Citrix Systems passes the test. Thus, it seems as though CTXS shares could still be poised for more gains ahead.
How Does Citrix Systems Stack Up to the Competition?
Shares of Citrix Systems have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including EPAM Systems (EPAM - Free Report) , CACI International (CACI - Free Report) , and Baidu (BIDU - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CTXS, even beyond its own solid fundamental situation.