4-Star Stocks Poised to Pop: SAP

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business software specialist SAP (NYS: SAP) has earned a respected four-star ranking.

With that in mind, let's take a closer look at SAP's business and see what CAPS investors are saying about the stock right now.

SAP facts

Headquarters (Founded)

Walldorf, Germany (1972)

Market Cap

$66.2 billion

Industry

Application software

Trailing-12-Month Revenue

$17.7 billion

Management

Co-CEO William McDermott
Co-CEO Jim Snabe

Return on Equity (Average, Past 3 Years)

25.3%

Cash / Debt

$5.7 billion / $5.0 billion

Dividend Yield

1.1%

Competitors

IBM, Microsoft, Oracle

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 88% of the 371 members who have rated SAP believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, JohnStuartMill, highlighted the tailwinds working in SAP's favor:

Continued expansion of on-demand sofware (Software as a service software). Building the cloud with very high quality products such as SuccessFactors should keep this company leading the way, and profiting handsomely. The "cloud" will continue to expand despite the recent weakness of cloud stocks. They will be back sometime soon with all the hype from the past and more.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, SAP may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of IBM, Microsoft, and Oracle. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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