Citrix Systems Inc. (CTXS): Today's Featured Computer Software & Services 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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Citrix Systems fell 91 cents (-1.3%) to $66.79 on average volume. Throughout the day, three million shares of Citrix Systems exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $66.51-$68.59 after having opened the day at $68.33 as compared to the previous trading day's close of $67.70. Other companies within the Computer Software & Services industry that declined today were: Kingtone Wirelessinfo Solution ( KONE), down 10.8%, China Mobile Games and Entertainment Group ( CMGE), down 10.6%, Authentidate Holding Corporation ( ADAT), down 8.1%, and TigerLogic Corporation ( TIGR), down 7.5%.
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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 $12.64 billion and is part of the technology sector. The company has a P/E ratio of 35.4, 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 11.5% 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 good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, DynaVox ( DVOX), up 23.6%, Webmedia Brands ( WEBM), up 8.7%, Optibase ( OBAS), up 7.6%, and Chyron Corporation ( CHYR), up 6.5%, were all gainers within the computer software & services industry with Automatic Data Processing ( ADP) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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