SAP SE SAP has teamed up with Loop Earplugs, specializing in sound protection accessories, to power its growth opportunities worldwide. Loop selected SAP S/4HANA Cloud Public Edition through the GROW with SAP for Scaleups program to provide a powerful, localized enterprise resource planning (ERP) solution that integrates smoothly with external partners and supports demanding supply chain operations. The initiative aids fast-growing companies like Loop in augmenting their scale of operations, optimizing valuations and achieving sustainable growth.

SAP’s cloud-based ERP solution offers a future-proof infrastructure that integrates effortlessly with Loop’s existing e-commerce channels and marketplaces, enhancing operational efficiency and customer experiences. The ERP gives real-time analytics, empowering Loop to make informed business decisions and drive international expansion. 

SAP’s Digital Hub team worked closely with Loop to ensure a seamless buying experience, harnessing cutting-edge artificial intelligence (AI) and digital technologies to address Loop’s needs quickly and effectively. By combining industry best practices with data-driven insights, SAP’s Digital Solution Advisory team suggested SAP S/4HANA Cloud Public Edition as the ideal choice for Loop. The process facilitated the creation of a customer-specific microsite, complete with business case analyses, solution demos and reference videos, for Loop to seek options at its desirable pace. This hybrid engagement model, which combined high-velocity digital interactions with in-person support from SAP’s partner Delaware, enabled Loop to settle its buying journey in under four months.

SAP Stands to Benefit From Strength in Cloud Business

SAP’s continuous innovation in its cloud business is driving healthy demand for the Rise with SAP and Grow with SAP solutions. In the last reported quarter, SAP’s cloud revenues soared 25% year over year to €4.35 billion, driven by a 34% rise in Cloud ERP Suite revenues. This reaffirms the company's strong foothold in cloud-based ERP solutions. The Rise with SAP solution, featuring pre-configured templates, industry best practices and robust support, helps businesses become more agile and digital. It drives SAP S/4HANA adoption and expands market share in cloud ERP. 

Furthermore, the Grow with SAP solution is gaining momentum with notable client wins such as Dawn Foods, DXC Technology, Gainsight, L'OCCITANE Group, Mistral AI, Palmer Candy, The Pool Tile Company and SCHURTER Holding, among others. Clorox, CPKC Railways, J.M. VOITH, KAESER KOMPRESSOREN, Nvidia, Panasonic Energy of North America and VistaPrint went live on SAP S/4HANA Cloud in the last reported quarter. SAP, together with Amazon Web Services, unveiled GROW with SAP on AWS cloud to empower clients of all sizes to rapidly deploy SAP’s ERP solution while getting the safety and scalability of AWS cloud.

Backed by the robust cloud demand, SAP raised its 2024 outlook. Management anticipates cloud and software revenues in the range of €29.5-€29.8 billion, suggesting an increase of 10-11% at constant currency (cc) on a year-over-year basis, elevating the midpoint by €400 million. The prior view was €29.0-29.5 billion at cc.

SAP’s Zacks Rank & Stock Price Performance

SAP currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 61.8% in the past year compared with the sub-industry's growth of 17.4%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Qualcomm Incorporated QCOM. IDCC & UI presently sport a Zacks Rank #1 (Strong Buy), while QCOM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.

 

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