CA, Inc. (CA) Low Risk Sign Rating Upgrade ?

Company Price levels are lower than 52 week high at -8.29% there is enough momentum to continue the uptrend in a favorable direction. As values near 52 Week there is enough gap in the intrinsic value and current price , so focus should be on the core drivers , not price.

Company charts are currently imply a moderate movement , RSI might move only between the same levels of 40 and 80. Though considering price values , stock price does not justifies company’s core strength , PB is above sector average at 2.34.

Market demand for growth is more than what we feel asset can actually deliver, on the contrary CA, Inc. fundamentals stipulate a strong growth, but factoring in the company’s growth rate at PEG 7.21, this tells a different story . Considering PEG CA, Inc. does not seem to be in sweet spot for investors with Technology sector PEG being higher at 1.86.

Firm board have been systematic in managing its assets to generate gross or it seems so. With increased current upwards growth rate of 2.69%, 19.39 PE set for uptrend .

With Quick R at 1.2 CA liquidity position is strong , nonetheless reports indicate current assets will be sufficient to meet the firms’ debt as and when they are payable .

Technology company having consistently reported support above its 200 Moving AVG and has continued to touch new supports . Company’s outstanding shares currently at $13809.14 ML and Is a major Technology with a strong market cap.

Thursday, Dec 21 tick up came in at $9.95 M and tick down at $4.78 Million led to up down ratio of 2.08xunderlying temporary downside caused buying opportunity with money flow recorded at $5.17 Million , this means that institutional investors used opportunity to accumulate stocks with block trades at $5.48 ML and together with block ratio of 0.00x of which upticks contributed $5.48 ML while down ticks bought in $0.00 ML , and as traders bought in to weakness and they expect price to reverse and move against the trader..

Investors are bullish for future growth prospects of the business and supported by investor interest present in this Technology sector as current assets price are expensive relative to its PE , and with its Technology sector trailing twelve months PE 19.39 though compares favourably and might not be genuine buying opportunity .

And PE in conjunction with Technology sector average growth of 27.43 shows signs of weakness in the stock price . CA, Inc. current assets to present liabilities reported at 1.2.

Supported by a string of factors, sector saw a change of -0.33 closing at 15979.08The Technology rally further compounded as the money flow clocked 2.08x with down tick of $8078.49mn leading to non-yielding $6354.74mn up ticks. Block trades acted as a tailwind, coming in at $-1673.61mn and $953.64mn and $2627.26mn of tick ups and tick downs respectively.

Company beta of 0.73 offers blanket from index volatility . Strong uptrend and the core fundamentals continue to support sustainable growth for the firm at 3.60% EPS, so considering historical earnings growth and last full-year growth, company EPS is set to cool down over the next year .

Strong management continue to drive growth and has helped in improving 12.40% ROE . Current forward earnings expectations for the company stand at 13.08 compared to present stock price and historical growth , yet estimated EPS predict better than expected growth above current PE of 19.39.

Share this post