Electronic Arts Inc. (EA): Computer Software & Services' Spotlighted Daily Leader

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.

Electronic Arts ( EA) 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 0.5%. By the end of trading, Electronic Arts rose 36 cents (2.1%) to $17.70 on average volume. Throughout the day, 5.8 million shares of Electronic Arts exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in a price between $17.54-$17.99 after having opened the day at $17.58 as compared to the previous trading day's close of $17.34. Other companies within the Computer Software & Services industry that increased today were: Qualys ( QLYS), up 6.5%, Camelot Information Systems ( CIS), up 6.5%, Perion Network ( PERI), up 5.6%, and Glu Mobile ( GLUU), up 5.1%.
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Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, tablets and electronic readers, and the Internet. Electronic Arts has a market cap of $5.61 billion and is part of the technology sector. The company has a P/E ratio of 38.2, above the S&P 500 P/E ratio of 17.7. Shares are up 18.1% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Electronic Arts as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the negative front, Cimatron ( CIMT), down 15.3%, Kingtone Wirelessinfo Solution ( KONE), down 14.3%, Cover-All Technologies ( COVR), down 13%, and Oracle Corporation ( ORCL), down 9.7%, were all laggards within the computer software & services industry with Cognizant Technology Solutions Corporation ( CTSH) 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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