CA Inc. (CA): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.6%. By the end of trading, CA fell $0.66 (-2.4%) to $27.11 on heavy volume. Throughout the day, 8,456,524 shares of CA exchanged hands as compared to its average daily volume of 3,167,100 shares. The stock ranged in price between $25.77-$27.25 after having opened the day at $25.79 as compared to the previous trading day's close of $27.77. Other companies within the Technology sector that declined today were: Oclaro ( OCLR), down 19.9%, ValueClick ( VCLK), down 15.8%, WPCS International ( WPCS), down 12.7% and Suntech Power Holdings ( STP), down 12.4%.
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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 $12.6 billion and is part of the computer software & services industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 25.9% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate CA a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates CA as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Plug Power ( PLUG), down 54.4%, CSP ( CSPI), down 27.8%, Renewable Energy Trade Board ( EBOD), down 24.0% and Deltathree ( DDDC), down 21.9% , were all gainers within the technology sector with Hewlett-Packard ( HPQ) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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