Software stocks have been outperforming the broader market through most of 2020. There are some critical trends at play driving this uptrend. Firstly, the shift towards cloud computing is something that cannot be missed. Secondly, work-from-home has led to more outstanding work being done remotely or online. Companies like Citrix Systems, which specialize in desktop virtualization technologies, have been in focus. If you are looking for a software stock to buy, then you may want to look for areas with strong growth. Networks and security are significant themes, companies with subscription revenues also tend to do well, and companies that can leverage remote working also seem to have bright prospects. In fact, it is being said that work-from-home may be here to stay even after the pandemic fades away. The phenomenon may be more permanent than people initially expected it to be.
Citrix Systems Business Information
Citrix Systems focuses on three key areas, namely, Workspace, App Delivery and Security, and Customer Success. Workspace involves delivering a unified, intelligent, and secure workspace for enterprises. App Delivery and Security focuses on providing applications and data with speed, reliability, and security. Customer Success offers consulting, training, and customer management services. Citrix has a variety of relationships with a variety of customers. It engages via cross-selling, strategic partnerships, partnerships with OEMs, joint reference architecture, reselling, and other such structures. The company has had a long-standing relationship with Microsoft for over 30 years. Google is also a partner for eight years. Capgemini, Wipro, IBM, and other major technology firms have relations with Citrix as well. The company has a solid business model, and if you are looking to buy software stocks now, then Citrix could be a candidate.
Citrix Systems has done reasonably well over the last five years. Its stock has gone from around $63 to $138. Interestingly, Citrix was trading at a dividend yield of over 1% on 30th March 2021. Usually, software stocks are high-growth-oriented businesses and are not known for paying high dividends. But Citrix seems to be paying a reasonable dividend.