Electronic Arts Inc. (EA): 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

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 up 0.8%. By the end of trading, Electronic Arts rose $0.84 (3.9%) to $22.48 on heavy volume. Throughout the day, 9,042,239 shares of Electronic Arts exchanged hands as compared to its average daily volume of 4,931,000 shares. The stock ranged in a price between $21.45-$22.57 after having opened the day at $21.50 as compared to the previous trading day's close of $21.64. Other companies within the Computer Software & Services industry that increased today were: ServiceSource International ( SREV), up 21.4%, TigerLogic Corporation ( TIGR), up 9.4%, Majesco Entertainment Company ( COOL), up 8.7% and Official Payments Holdings ( OPAY), up 8.5%.
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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 $6.5 billion and is part of the technology sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 48.5% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Electronic Arts as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Marin Software ( MRIN), down 12.7%, Wave Systems Corporation ( WAVX), down 12.2%, AutoNavi Holdings ( AMAP), down 9.9% and Bridgeline Digital ( BLIN), down 7.9% , 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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