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Electronic Arts Inc. (EA): 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.

Electronic Arts ( EA) 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 0.3%. By the end of trading, Electronic Arts fell 37 cents (-2.1%) to $17.17 on average volume. Throughout the day, 5.3 million shares of Electronic Arts exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $17.06-$17.55 after having opened the day at $17.39 as compared to the previous trading day's close of $17.54. Other companies within the Computer Software & Services industry that declined today were: Rackspace Hosting ( RAX), down 19.6%, Sapient Corporation ( SAPE), down 8.1%, Egain Communications Corporation ( EGAN), down 7.9%, and Crexendo ( EXE), down 6.2%.

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Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, tablets and electronic readers, and the Internet. Electronic Arts has a market cap of $5.22 billion and is part of the technology sector. The company has a P/E ratio of 35.5, above the S&P 500 P/E ratio of 17.7. Shares are up 19.9% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Electronic Arts as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

On the positive front, CounterPath Corporation ( CPAH), up 19.8%, Pros Holdings ( PRO), up 18.2%, icad ( ICAD), up 17.2%, and Cimatron ( CIMT), up 15.1%, were all gainers within the computer software & services industry with Nielsen Holdings ( NLSN) 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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