Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Citrix Systems

(

CTXS

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Citrix Systems as such a stock due to the following factors:

  • CTXS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $175.5 million.
  • CTXS has a PE ratio of 43.7.
  • CTXS is currently in the upper 30% of its 1-year range.
  • CTXS is in the upper 25% of its 20-day range.
  • CTXS is in the upper 35% of its 5-day range.
  • CTXS is currently trading above yesterday's high.
  • CTXS has experienced a gap between today's open and yesterday's close of 1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on CTXS:

Citrix Systems, Inc. provides virtualization, mobility management, networking, and Software as a Service solutions worldwide. CTXS has a PE ratio of 43.7. Currently there are 9 analysts that rate Citrix Systems a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for Citrix Systems has been 1.5 million shares per day over the past 30 days. Citrix Systems has a market cap of $10.3 billion and is part of the technology sector and computer software & services industry. Shares are up 1.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Citrix Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Software industry average. The net income has significantly decreased by 31.3% when compared to the same quarter one year ago, falling from $138.64 million to $95.23 million.
  • Net operating cash flow has decreased to $190.43 million or 22.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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