Sap AG ADR (SAP): Computer Software & Services' Featured Stock Of The Day

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 0.3%. By the end of trading, Sap AG ADR rose 85 cents (1.1%) to $78.91 on heavy volume. Throughout the day, 2.3 million shares of Sap AG ADR exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $77.35-$79.02 after having opened the day at $77.45 as compared to the previous trading day's close of $78.06. Other companies within the Computer Software & Services industry that increased today were: Wireless Ronin Technologies ( RNIN), up 14.5%, Kingtone Wirelessinfo Solution ( KONE), up 9.7%, Glu Mobile ( GLUU), up 6.5%, and Bridgeline Digital ( BLIN), up 5.9%.
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SAP AG provides enterprise application software and software-related services worldwide. It offers products in applications, analytics, cloud, mobile, and database and technology categories. Sap AG ADR has a market cap of $95.68 billion and is part of the technology sector. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are down 2.9% year to date as of the close of trading on Wednesday. Currently there are five 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, 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.

On the negative front, DynaVox ( DVOX), down 36.4%, Fortinet ( FTNT), down 13.1%, China Information Technology ( CNIT), down 12.9%, and Astea International ( ATEA), down 5.8%, were all laggards within the computer software & services industry with Salesforce.com ( CRM) 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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