CA Inc. (CA): 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.

CA ( CA) 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 0.1%. By the end of trading, CA fell $2.17 (-8.7%) to $22.73 on heavy volume. Throughout the day, 15 million shares of CA exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $22.50-$23.78 after having opened the day at $23.40 as compared to the previous trading day's close of $24.90. Other companies within the Computer Software & Services industry that declined today were: VeriSign ( VRSN), down 15.5%, Kingtone Wirelessinfo Solution ( KONE), down 13.3%, Unisys Corporation ( UIS), down 8.3%, and Qlik Technologies ( QLIK), down 7.7%.
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CA Technologies, together with its subsidiaries, provides enterprise information technology (IT) management software and solutions in the United States and internationally. The company operates in three segments: Mainframe Solutions, Enterprise Solutions, and Services. CA has a market cap of $11.44 billion and is part of the technology sector. The company has a P/E ratio of 12.4, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year to date as of the close of trading on Thursday. Currently there are two analysts that rate CA a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates CA as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Recon Technology ( RCON), up 21%, NetSuite ( N), up 14.9%, WebMD Health Corporation ( WBMD), up 14.6%, and THQ ( THQI), up 13.4%, were all gainers within the computer software & services industry with Microsoft Corporation ( MSFT) 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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