Why Electronic Arts Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game publisher Electronic Arts (NASDAQ: EA  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at EA and see what CAPS investors are saying about the stock right now.

EA facts

   

Headquarters (founded)

Redwood City, Calif. (1982)

Market Cap

$5.7 billion

Industry

Home entertainment software

Trailing-12-Month Revenue

$4.0 billion

Management

CEO John Riccitiello (since 2007)

CFO Blake Jorgensen (since 2012)

Return on Equity (average, past 3 years)

(5.1%)

Cash/Debt

$1.5 billion/$554.0 million

Competitors

Activision Blizzard (NASDAQ: ATVI  )

Microsoft (NASDAQ: MSFT  )

Nintendo

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 12% of the 2,215 members who have rated EA believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, sikiliza, succinctly summed up the EA bear case for our community:

Another gaming company that does not seem to understand their constituent clientele. Their decisions are knee-jerk reactions to what might work rather than anticipatory moves that illustrate their view of the gaming world and the future of gaming. The stock is currently being carried along by the upward tidal movements of the market.

While Activision and Microsoft have been taking the headlines when it comes to console gaming, Fools following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. Our new special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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