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 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 $156.4 million.
- SAP traded 434,127 shares today in the pre-market hours as of 5:47 AM, representing 20.3% of its average daily volume.
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More details on SAP:
SAP AG provides enterprise application software and software-related services worldwide. It offers products in applications, analytics, cloud, mobile, and database and technology categories. The stock currently has a dividend yield of 1.1%. SAP has a PE ratio of 19.3. Currently there are 4 analysts that rate Sap a buy, 2 analysts rate it a sell, and 12 rate it a hold.
The average volume for Sap has been 1.5 million shares per day over the past 30 days. Sap has a market cap of $86.3 billion and is part of the technology sector and computer software & services industry. Shares are down 9.9% year to date as of the close of trading on Tuesday.
rates Sap as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, reasonable valuation levels, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- SAP's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 13.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- Net operating cash flow has significantly increased by 64.34% to $458.26 million when compared to the same quarter last year. In addition, SAP AG has also vastly surpassed the industry average cash flow growth rate of -13.68%.
- The gross profit margin for SAP AG is currently very high, coming in at 76.30%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.77% trails the industry average.
- You can view the full Sap Ratings Report.