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 0.2%. By the end of trading, Sap fell $1.81 (-2.4%) to $72.75 on heavy volume. Throughout the day, 3,021,938 shares of Sap exchanged hands as compared to its average daily volume of 1,374,900 shares. The stock ranged in price between $71.91-$73.10 after having opened the day at $72.99 as compared to the previous trading day's close of $74.56. Other companies within the Computer Software & Services industry that declined today were: Ebix ( EBIX), down 13.4%, Oracle Corporation ( ORCL), down 9.3%, Mam Software Group ( MAMS), down 8.6% and Authentidate Holding Corporation ( ADAT), down 7.4%.
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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 $91.1 billion and is part of the technology sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are down 7.2% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Sap a buy, 3 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 positive front, TigerLogic Corporation ( TIGR), down 25.6%, Intelligent Systems ( INS), down 16.3%, ChyronHego ( CHYR), down 9.4% and Bridgeline Digital ( BLIN), down 9.2% , 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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