Sap AG ADR (SAP): Today's Featured Technology Laggard

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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 1.4%. By the end of trading, Sap AG ADR fell 84 cents (-1%) to $79.70 on average volume. Throughout the day, one million shares of Sap AG ADR exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $79.67-$80.88 after having opened the day at $80.65 as compared to the previous trading day's close of $80.54. Other companies within the Technology sector that declined today were: Anadigics ( ANAD), down 14.3%, Mitek Systems ( MITK), down 14%, Giga-tronics ( GIGA), down 13.3%, and Dataram Corporation ( DRAM), down 11.8%.
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SAP AG provides enterprise application software and software-related services worldwide. Sap AG ADR has a market cap of $95.43 billion and is part of the computer software & services industry. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are down 0.4% year to date as of the close of trading on Tuesday. Currently there are seven 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 robust revenue growth, solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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