Trade-Ideas LLC identified

Electronic Arts

(

EA

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Electronic Arts as such a stock due to the following factors:

  • EA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $337.0 million.
  • EA traded 10,031 shares today in the pre-market hours as of 8:11 AM.
  • EA is down 6.8% today from yesterday's close.

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More details on EA:

Electronic Arts Inc. develops, markets, publishes, and distributes game software content and online services for video game consoles, Internet-connected consoles, personal computers, mobile phones, and tablets worldwide. The company operates through EA Studios, EA Mobile, and Maxis divisions. EA has a PE ratio of 28. Currently there are 13 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 3 rate it a hold.

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The average volume for Electronic Arts has been 4.1 million shares per day over the past 30 days. Electronic Arts has a market cap of $22.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.57 and a short float of 7% with 4.02 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Electronic Arts as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • EA's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, ELECTRONIC ARTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, EA's share price has jumped by 39.44%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ELECTRONIC ARTS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ELECTRONIC ARTS INC turned its bottom line around by earning $2.68 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $2.68).
  • EA, with its decline in revenue, slightly underperformed the industry average of 16.5%. Since the same quarter one year prior, revenues fell by 17.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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