Sap AG (SAP): Today's Featured Technology Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Sap ( SAP) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.7%. By the end of trading, Sap rose $0.85 (1.0%) to $83.38 on light volume. Throughout the day, 658,534 shares of Sap exchanged hands as compared to its average daily volume of 1,220,900 shares. The stock ranged in a price between $83.04-$83.55 after having opened the day at $83.14 as compared to the previous trading day's close of $82.53. Other companies within the Technology sector that increased today were: Eltek ( ELTK), up 49.8%, Lantronix ( LTRX), up 27.0%, WPCS International ( WPCS), up 24.6% and Crossroads Systems ( CRDS), up 15.7%.

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 $98.2 billion and is part of the computer software & services industry. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Sap a buy, 2 analysts rate it a sell, and 7 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, reasonable valuation levels, compelling growth in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, OCZ Technology Group ( OCZ), down 74.6%, Velti ( VELT), down 26.9%, Camtek ( CAMT), down 13.9% and PTGi ( PTGI), down 12.8% , were all laggards within the technology sector with Analog Devices ( ADI) being today's technology sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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