Sap AG (SAP): Today's Featured Computer Software & Services Laggard

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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Sap fell $1.35 (-1.7%) to $80.06 on heavy volume. Throughout the day, 4,807,539 shares of Sap exchanged hands as compared to its average daily volume of 1,016,600 shares. The stock ranged in price between $79.75-$80.58 after having opened the day at $80.35 as compared to the previous trading day's close of $81.41. Other companies within the Computer Software & Services industry that declined today were: Liquid Holdings Group ( LIQD), down 15.3%, Bridgeline Digital ( BLIN), down 10.4%, Ninetowns Internet Technology Group Company ( NINE), down 8.2% and Netsol Technologies ( NTWK), down 5.4%.

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 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 down 6.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Sap a buy, 1 analyst rates 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 positive front, Vringo ( VRNG), up 21.7%, China Digital TV ( STV), up 11.3%, Mitek Systems ( MITK), up 9.3% and Astea International ( ATEA), up 8.0% , were all gainers within the computer software & services industry with Adobe Systems ( ADBE) 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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