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 $184.5 million.
  • CTXS has a PE ratio of 47.
  • 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 0.5%.

'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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TheStreet Recommends

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 47. Currently there are 12 analysts that rate Citrix Systems a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Citrix Systems has been 2.1 million shares per day over the past 30 days. Citrix Systems has a market cap of $13.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.27 and a short float of 2.8% with 2.01 days to cover. Shares are up 28.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Citrix Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 18.9%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 17.6% when compared to the same quarter one year prior, going from $47.53 million to $55.93 million.
  • Net operating cash flow has significantly increased by 58.28% to $259.80 million when compared to the same quarter last year. In addition, CITRIX SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -12.64%.
  • CITRIX SYSTEMS INC has improved earnings per share by 20.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITRIX SYSTEMS INC reported lower earnings of $1.48 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $1.48).

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