Trade-Ideas LLC identified

CA

(

CA

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified CA as such a stock due to the following factors:

  • CA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.4 million.
  • CA is up 3.7% today from today's close.

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More details on CA:

CA, Inc. provides information technology (IT) management software and solutions that help organizations plan, develop, manage, and secure applications and IT infrastructure in the United States and internationally. The stock currently has a dividend yield of 3.7%. CA has a PE ratio of 16. Currently there are 4 analysts that rate CA a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for CA has been 3.0 million shares per day over the past 30 days. CA has a market cap of $11.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.79 and a short float of 4% with 3.65 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CA as a

buy

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, 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 has had sub par growth in net income.

Highlights from the ratings report include:

  • The gross profit margin for CA INC is currently very high, coming in at 85.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.31% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 16.5%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.32, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
  • CA INC's earnings per share declined by 26.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CA INC reported lower earnings of $1.83 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $1.83).

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