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SAP (SAP) Gains But Lags Market: What You Should Know
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SAP (SAP - Free Report) closed at $126.55 in the latest trading session, marking a +0.38% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Heading into today, shares of the business software maker had gained 10.08% over the past month, outpacing the Computer and Technology sector's gain of 8.79% and the S&P 500's gain of 2.28% in that time.
Wall Street will be looking for positivity from SAP as it approaches its next earnings report date. This is expected to be April 21, 2023. On that day, SAP is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 5.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.73 billion, down 2.67% from the year-ago period.
SAP's full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $33.56 billion. These results would represent year-over-year changes of +31.54% and +3.37%, respectively.
Investors should also note any recent changes to analyst estimates for SAP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SAP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SAP is currently trading at a Forward P/E ratio of 22.38. For comparison, its industry has an average Forward P/E of 27.84, which means SAP is trading at a discount to the group.
It is also worth noting that SAP currently has a PEG ratio of 1.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SAP in the coming trading sessions, be sure to utilize Zacks.com.
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SAP (SAP) Gains But Lags Market: What You Should Know
SAP (SAP - Free Report) closed at $126.55 in the latest trading session, marking a +0.38% move from the prior day. The stock lagged the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Heading into today, shares of the business software maker had gained 10.08% over the past month, outpacing the Computer and Technology sector's gain of 8.79% and the S&P 500's gain of 2.28% in that time.
Wall Street will be looking for positivity from SAP as it approaches its next earnings report date. This is expected to be April 21, 2023. On that day, SAP is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 5.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.73 billion, down 2.67% from the year-ago period.
SAP's full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $33.56 billion. These results would represent year-over-year changes of +31.54% and +3.37%, respectively.
Investors should also note any recent changes to analyst estimates for SAP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SAP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SAP is currently trading at a Forward P/E ratio of 22.38. For comparison, its industry has an average Forward P/E of 27.84, which means SAP is trading at a discount to the group.
It is also worth noting that SAP currently has a PEG ratio of 1.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SAP in the coming trading sessions, be sure to utilize Zacks.com.