CA Inc. (CA): Today's Featured Computer Software & Services Winner

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 higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.3%. By the end of trading, CA rose 47 cents (2%) to $24.09 on heavy volume. Throughout the day, 7.5 million shares of CA exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in a price between $23.45-$24.12 after having opened the day at $23.45 as compared to the previous trading day's close of $23.62. Other companies within the Computer Software & Services industry that increased today were: BOS Better Online Solutions ( BOSC), up 20.3%, Streamline Health Solutions ( STRM), up 9.8%, Smith Micro Software ( SMSI), up 7.1%, and 21Vianet Group ( VNET), up 6.9%.
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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 $10.82 billion and is part of the technology sector. The company has a P/E ratio of 12, below the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Tuesday. 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 increase in stock price during the past year, notable return on equity, attractive valuation levels, growth in earnings per share 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.

On the negative front, China Mobile Games and Entertainment Group ( CMGE), down 12.9%, PDF Solutions ( PDFS), down 7.6%, TigerLogic Corporation ( TIGR), down 5.6%, and Authentidate Holding Corporation ( ADAT), down 5.5%, were all laggards within the computer software & services industry with Rackspace Hosting ( RAX) being today's computer software & services industry laggard.

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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