Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader 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 $144.2 million.
- EA is up 4% today from today's close.
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More details on EA:
Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, and tablets. The company operates through EA Games, EA SPORTS, Maxis, PopCap, and All Play segments. EA has a PE ratio of 101.0. Currently there are 11 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Electronic Arts has been 3.4 million shares per day over the past 30 days. Electronic Arts has a market cap of $11.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.76 and a short float of 4.9% with 3.52 days to cover. Shares are up 58.5% year-to-date as of the close of trading on Monday.
rates Electronic Arts as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- EA's revenue growth has slightly outpaced the industry average of 25.7%. Since the same quarter one year prior, revenues rose by 27.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EA's debt-to-equity ratio is very low at 0.22 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 1.42, which illustrates the ability to avoid short-term cash problems.
- 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 50.9% when compared to the same quarter one year prior, rising from $222.00 million to $335.00 million.
- Net operating cash flow has significantly increased by 101.61% to $4.00 million when compared to the same quarter last year. In addition, ELECTRONIC ARTS INC has also vastly surpassed the industry average cash flow growth rate of 10.20%.
- Powered by its strong earnings growth of 46.47% and other important driving factors, this stock has surged by 47.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Electronic Arts Ratings Report.