Sap AG (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 ( 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 0.1%. By the end of trading, Sap rose $1.42 (1.9%) to $74.86 on average volume. Throughout the day, 1,858,841 shares of Sap exchanged hands as compared to its average daily volume of 1,296,300 shares. The stock ranged in a price between $74.23-$75.01 after having opened the day at $75.01 as compared to the previous trading day's close of $73.44. Other companies within the Computer Software & Services industry that increased today were: FalconStor Software ( FALC), up 24.6%, Wave Systems Corporation ( WAVX), up 21.1%, ChyronHego ( CHYR), up 14.8% and Agilysys ( AGYS), up 10.4%.
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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 $91.0 billion and is part of the technology sector. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are down 8.6% year to date as of the close of trading on Friday. Currently there are 4 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, reasonable valuation levels, increase in net income 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, Webmedia Brands ( WEBM), down 9.0%, China Mobile Games and Entertainment Group ( CMGE), down 5.6%, 3D Systems Corporation ( DDD), down 5.3% and TSR ( TSRI), down 5.3% , 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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