SAP SE (SAP) Is Today's Pre-Market Mover With Heavy Volume Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SAP SE as such a stock due to the following factors:
- SAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.7 million.
- SAP traded 116,063 shares today in the pre-market hours as of 8:06 AM, representing 13.6% of its average daily volume.
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More details on SAP:
SAP AG provides enterprise application software and software-related services worldwide. The stock currently has a dividend yield of 2.5%. SAP has a PE ratio of 18.7. Currently there are 4 analysts that rate SAP SE a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for SAP SE has been 1.2 million shares per day over the past 30 days. SAP SE has a market cap of $83.8 billion and is part of the technology sector and computer software & services industry. Shares are up 2.1% year-to-date as of the close of trading on Monday.
Analysis:
rates SAP SE as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The gross profit margin for SAP SE is currently very high, coming in at 78.68%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.70% is above that of the industry average.
- SAP SE's earnings per share declined by 20.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SAP SE reported lower earnings of $3.32 versus $3.83 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $3.32).
- SAP, with its decline in revenue, underperformed when compared the industry average of 10.3%. Since the same quarter one year prior, revenues fell by 18.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, SAP SE's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full SAP SE Ratings Report.
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