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 up 0.5%. By the end of trading, Sap AG ADR rose $1.31 (1.8%) to $72.90 on light volume. Throughout the day, 958,990 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 $72.61-$73.35 after having opened the day at $73.26 as compared to the previous trading day's close of $71.59. Other companies within the Computer Software & Services industry that increased today were: OPNET Technologies ( OPNT), up 31%, Recon Technology ( RCON), up 23.6%, Kingtone Wirelessinfo Solution ( KONE), up 22.6%, and CommVault Systems ( CVLT), up 16.6%.
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SAP AG provides enterprise application software and software-related services worldwide. Sap AG ADR has a market cap of $85.22 billion and is part of the technology sector. The company has a P/E ratio of 19.1, above the average computer software & services industry P/E ratio of 18.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 35.2% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Sap AG ADR a buy, two analysts rate it a sell, and 12 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 revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Vringo ( VRNG), down 36%, TSR ( TSRI), down 18.7%, Actuate Corporation ( BIRT), down 16.4%, and MicroStrategy ( MSTR), down 14%, were all laggards within the computer software & services industry with Red Hat ( RHT) 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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