Electronic Arts Inc. (EA): 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

Electronic Arts ( EA) 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 0.8%. By the end of trading, Electronic Arts fell $1.06 (-4.7%) to $21.54 on average volume. Throughout the day, 6,624,450 shares of Electronic Arts exchanged hands as compared to its average daily volume of 4,973,800 shares. The stock ranged in price between $21.43-$22.91 after having opened the day at $22.79 as compared to the previous trading day's close of $22.60. Other companies within the Computer Software & Services industry that declined today were: Take-Two Interactive Software ( TTWO), down 8.6%, Kingtone Wirelessinfo Solution ( KONE), down 8.1%, China Information Technology ( CNIT), down 7.4% and icad ( ICAD), down 7.3%.
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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 $6.9 billion and is part of the technology sector. The company has a P/E ratio of 73.8, above the S&P 500 P/E ratio of 17.7. Shares are up 57.5% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 10 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, solid stock price performance 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, Agilysys ( AGYS), down 9.2%, Mitek Systems ( MITK), down 5.8%, Sonic Foundry ( SOFO), down 5.3% and Cornerstone OnDemand ( CSOD), down 5.0%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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