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SAP, Grupo Ink Deal to Build Digital Smart Supply Chain
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SAP SE (SAP - Free Report) has been selected by Grupo Boticário to help in the creation of an efficient and scalable digital platform to aid in cost-effective manufacturing of Grupo’s products, including cosmetics and perfumes.
With around 4,000 point of sale in Brzail and 12 other countries, Grupo Boticário is one of the worldwide leaders in the cosmetics industry. Grupo intends to create best-in-class systems and platforms, and productivity systems — a flexible, scalable platform — to build a connected and intelligent supply chain.
Leveraging on SAP Ariba’s Network and its cloud-based applicationsfor direct spend and Integrated Business Planning system, Grupo aims to digitize its extended supply chain. Further, it will create a simple process for managing expenditure and enable better buying. Moreover, Grupo can integrate its product design, R&D and manufacturing processes through SAP Ariba’s state-of-the-art solutions.
Digital Transformations’ Prospects Look Bright
IDC estimates that 40% of technology spending will be allotted to digital transformations, with enterprises spending more than $2 trillion by 2019.
According to Harvard Business School, leading digital companies report better gross margins (about 55%) compared with organizations lagging digitally, which generate about 37%.
We therefore believe that the company’s initiatives in this regard will prove to be extremely beneficial to its top-line growth going forward.
Ariba – A Key Driver
Ariba has turned out to be a profit churner for SAP, managing the business of 3 million clients, who purchase or sell goods and services worth more than $1 trillion.
During the second quarter of 2018, new cloud bookings — a key indicator of sales success in cloud business — were up an impressive 29% (at constant currency or cc) to €421 million. Notably, Ariba was a chief contributor to this growth.
SAP provides collaborative commerce capabilities (Ariba), flexible workforce management (Fieldglass), and effortless travel and expense processing (Concur) under its Business Network commerce platform.
SAP remains optimistic that growing demand for simplified and automated business-to-business commerce solutions will fuel Ariba’s growth. SAP’s resilient Cloud and Software business, an enviable business network spread, and dominance over critical client demand areas continue to act as chief growth drivers.
The projected earnings growth rate (3-5 years) for Cypress, Salesforce and Aspen are 16.1%, 25% and 16.5%, respectively.
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SAP, Grupo Ink Deal to Build Digital Smart Supply Chain
SAP SE (SAP - Free Report) has been selected by Grupo Boticário to help in the creation of an efficient and scalable digital platform to aid in cost-effective manufacturing of Grupo’s products, including cosmetics and perfumes.
With around 4,000 point of sale in Brzail and 12 other countries, Grupo Boticário is one of the worldwide leaders in the cosmetics industry. Grupo intends to create best-in-class systems and platforms, and productivity systems — a flexible, scalable platform — to build a connected and intelligent supply chain.
Leveraging on SAP Ariba’s Network and its cloud-based applicationsfor direct spend and Integrated Business Planning system, Grupo aims to digitize its extended supply chain. Further, it will create a simple process for managing expenditure and enable better buying. Moreover, Grupo can integrate its product design, R&D and manufacturing processes through SAP Ariba’s state-of-the-art solutions.
Digital Transformations’ Prospects Look Bright
IDC estimates that 40% of technology spending will be allotted to digital transformations, with enterprises spending more than $2 trillion by 2019.
According to Harvard Business School, leading digital companies report better gross margins (about 55%) compared with organizations lagging digitally, which generate about 37%.
We therefore believe that the company’s initiatives in this regard will prove to be extremely beneficial to its top-line growth going forward.
Ariba – A Key Driver
Ariba has turned out to be a profit churner for SAP, managing the business of 3 million clients, who purchase or sell goods and services worth more than $1 trillion.
During the second quarter of 2018, new cloud bookings — a key indicator of sales success in cloud business — were up an impressive 29% (at constant currency or cc) to €421 million. Notably, Ariba was a chief contributor to this growth.
SAP provides collaborative commerce capabilities (Ariba), flexible workforce management (Fieldglass), and effortless travel and expense processing (Concur) under its Business Network commerce platform.
SAP SE Price
SAP SE Price | SAP SE Quote
Bottom Line
SAP remains optimistic that growing demand for simplified and automated business-to-business commerce solutions will fuel Ariba’s growth. SAP’s resilient Cloud and Software business, an enviable business network spread, and dominance over critical client demand areas continue to act as chief growth drivers.
Zacks Rank & Keys Picks
Currently, SAP carries a Zacks Rank #3 (Hold).
Few better-ranked stocks in the broader technology sector are Cypress Semiconductor Corporation , Salesforce.com Inc (CRM - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The projected earnings growth rate (3-5 years) for Cypress, Salesforce and Aspen are 16.1%, 25% and 16.5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>