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Citrix Systems Inc. (CTXS): Today's Featured Computer Software & Services Underperformer

Tickers in this article: CTXS

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 0.1%. By the end of trading, Citrix Systems fell 86 cents (-1.3%) to $68.04 on average volume. Throughout the day, 2.5 million shares of Citrix Systems exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $66.83-$69.19 after having opened the day at $69.02 as compared to the previous trading day's close of $68.90. Other companies within the Computer Software & Services industry that declined today were: Saba Software ( SABA), down 10.1%, DynaVox ( DVOX), down 8.2%, Chyron Corporation ( CHYR), down 6.7%, and Merge Healthcare ( MRGE), down 5.8%.

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Citrix Systems, Inc. provides cloud computing solutions that enable information technology (IT) and service providers to build private and public clouds worldwide. The company operates in two divisions, Enterprise and Online Services. Citrix Systems has a market cap of $13 billion and is part of the technology sector. The company has a P/E ratio of 37.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5% year to date as of the close of trading on Friday. Currently there are 20 analysts that rate Citrix Systems a buy, no analysts rate it a sell, and seven 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, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Innovative Solutions and Support ( ISSC), up 12%, Wave Systems Corporation ( WAVX), up 11.8%, China Information Technology ( CNIT), up 8.3%, and Sapiens International Corporation ( SPNS), up 8.1%, were all gainers within the computer software & services industry with Oracle Corporation ( ORCL) 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).