SAP SE (SAP - Free Report) recently revealed that deployment of SAP Hybris Marketing Cloud solution has empowered businesses to gain deeper insight into customers, resulting in higher return on investment. Per the June 2017 commissioned study, conducted by Forrester Consulting on behalf of SAP Hybris, use of SAP Hybris Marketing Cloud has helped enterprises achieve net-new revenue increase by an average of $10.1 million over three years and ROI increase 306%.
Deployment of SAP Hybris Marketing Cloud aids in engagement with customers across channels and devices as well as consolidate those insights into a single view, thus enabling companies to deliver personalized and relevant messages along with launching marketing campaigns. Per the study, the solution helps in improving e-mail conversion by 40%, increasing average order value (AOV) by 5%, boosting reporting functions and dashboards, consolidate disparate marketing systems as well as reducing integration costs.
However, SAP’s performances have been negatively affected by the dull prospects of the global IT industry in recent quarters, along with flat customer spending projections. Consequently, the company’s stock has yielded a return of 3.2% in the past three months, underperforming the industry’s increase of 6.4%.
Moreover, the company’s business is global in nature, which exposes it to political, economical as well as regulatory risks. Over the past few quarters, many of the company’s emerging markets have faced widespread economic slowdowns, which adversely impacted purchasing power. Currency fluctuations in many of its key markets are also adding to the woes. Further, the industry in which the company operates is highly competitive, which can hurt margins and erode market share. However, it seems that the resiliency of its Cloud and Software business, presence of a large business network and strategic partnerships could help this Zacks Rank #4 (Sell) company overcome the headwinds and achieve sustainable growth.
Stocks to Consider
Some better-ranked stocks from the same space are Dassault Systemes SA (DASTY - Free Report) , Xplore Technologies Corp (XPLR - Free Report) and Intuit Inc. (INTU - Free Report) . While Dassault Systemes and Xplore Technologies sport a Zacks Rank #1 (Strong Buy), Intuit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dassault Systemes has surpassed estimates in three of the trailing four quarters, with an average positive earnings surprise of 9.8%.
Xplore Technologies has outpaced estimates in the preceding four quarters, with an average earnings surprise of 102.5%.
Intuit has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 32.5%.
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