Sap AG ADR (SAP): Today's Featured Computer Software & Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Sap AG ADR ( SAP) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.4%. By the end of trading, Sap AG ADR rose $1.52 (2.2%) to $71.21 on heavy volume. Throughout the day, 3.1 million shares of Sap AG ADR exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $70.73-$72.47 after having opened the day at $72.07 as compared to the previous trading day's close of $69.69. Other companies within the Computer Software & Services industry that increased today were: DynaVox ( DVOX), up 16.9%, Ellie Mae ( ELLI), up 9.6%, Webmedia Brands ( WEBM), up 7.3%, and Smith Micro Software ( SMSI), up 5.7%.
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SAP AG provides enterprise application software and software-related services worldwide. Sap AG ADR has a market cap of $82.92 billion and is part of the technology sector. The company has a P/E ratio of 18.6, above the average computer software & services industry P/E ratio of 18.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 31.6% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Sap AG ADR a buy, two analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Sap AG ADR as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Kingtone Wirelessinfo Solution ( KONE), down 15.3%, Unisys Corporation ( UIS), down 13.5%, Compuware Corporation ( CPWR), down 11.8%, and Websense ( WBSN), down 11.3%, were all laggards within the computer software & services industry with F5 Networks ( FFIV) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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