Citrix Systems Inc. (CTXS): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Citrix Systems ( CTXS) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.6%. By the end of trading, Citrix Systems fell 97 cents (-1.4%) to $70.60 on heavy volume. Throughout the day, 4.4 million shares of Citrix Systems exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $69.46-$71.89 after having opened the day at $71.53 as compared to the previous trading day's close of $71.57. Other companies within the Technology sector that declined today were: Affymetrix ( AFFX), down 13.9%, Progress Software ( PRGS), down 13.8%, Unwired Planet ( UPIP), down 12.3%, and Netsol Technologies ( NTWK), down 11.1%.
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Citrix Systems, Inc. designs, develops, and markets technology solutions to deliver IT services on-demand worldwide. Citrix Systems has a market cap of $13.96 billion and is part of the computer software & services industry. The company has a P/E ratio of 39.1, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Citrix Systems a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Citrix Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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