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 down 0.6%. By the end of trading, CA fell 39 cents (-1.8%) to $21.77 on average volume. Throughout the day, four million shares of CA exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in price between $21.70-$22.34 after having opened the day at $22.32 as compared to the previous trading day's close of $22.16. Other companies within the Computer Software & Services industry that declined today were: China Mobile Games and Entertainment Group ( CMGE), down 18.6%, DynaVox ( DVOX), down 12.6%, Wireless Ronin Technologies ( RNIN), down 11.1%, and Unwired Planet ( UPIP), down 8.8%.
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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 $10.16 billion and is part of the technology sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9.6% year to date as of the close of trading on Friday. Currently there is one analyst that rates CA a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates CA as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, growth in earnings per share, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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