Sap AG (SAP): Today's Featured Computer Software & Services 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 ( SAP) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Sap fell $0.93 (-1.1%) to $82.18 on light volume. Throughout the day, 831,414 shares of Sap exchanged hands as compared to its average daily volume of 1,258,500 shares. The stock ranged in price between $81.87-$82.47 after having opened the day at $81.94 as compared to the previous trading day's close of $83.11. Other companies within the Computer Software & Services industry that declined today were: Webmedia Brands ( WEBM), down 12.5%, Computer Sciences Corporation ( CSC), down 9.7%, QAD ( QADB), down 6.5% and Rackspace Hosting ( RAX), down 5.8%.
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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 has a market cap of $97.9 billion and is part of the technology sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 3.4% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Sap a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Sap as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Marin Software ( MRIN), down 13.3%, TigerLogic Corporation ( TIGR), down 11.6%, GlobalSCAPE Incorporated ( GSB), down 10.3% and Crexendo ( EXE), down 7.3% , were all gainers within the computer software & services industry with Red Hat ( RHT) being today's featured computer software & services industry leader.

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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