Trade-Ideas LLC identified

Electronic Arts

(

EA

) as a new lifetime high 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 $221.2 million.
  • EA has traded 51,619 shares today.
  • EA is trading at a new lifetime high.

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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 25. Currently there are 12 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Electronic Arts has been 3.2 million shares per day over the past 30 days. Electronic Arts has a market cap of $23.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.62 and a short float of 6.2% with 6.41 days to cover. Shares are up 59.4% year-to-date as of the close of trading on Monday.

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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, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 26.92% and other important driving factors, this stock has surged by 112.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ELECTRONIC ARTS INC has improved earnings per share by 26.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($2.92 versus $2.68).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 31.9% when compared to the same quarter one year prior, rising from $335.00 million to $442.00 million.
  • EA's debt-to-equity ratio is very low at 0.19 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 1.49, 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.

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