Trade-Ideas LLC identified

SAP SE

(

SAP

) 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 $45.7 million.
  • SAP traded 65,923 shares today in the pre-market hours as of 8:48 AM, representing 11.4% of its average daily volume.

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More details on SAP:

SAP SE provides application and analytics software and software-related services for enterprises worldwide. The stock currently has a dividend yield of 1.1%. SAP has a PE ratio of 21. Currently there are 4 analysts that rate SAP SE a buy, no analysts rate it a sell, and 6 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 $94.9 billion and is part of the technology sector and computer software & services industry. Shares are up 0.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SAP SE as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for SAP SE is currently very high, coming in at 71.04%. Regardless of SAP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SAP's net profit margin of 20.80% compares favorably to the industry average.

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