SAP SE (SAP): Why This Mega-cap Stock Could Continue Surging Post 52-week Highs

We recently compiled a list of the 10 Mega-Cap Stocks That Could Continue Surging Post 52-Week Highs. In this article, we are going to take a look at where SAP SE (NYSE:SAP) stands against the other mega-cap stocks.

The US stock markets have gone up leading up to the day of President Donald Trump’s inauguration. All the major indices are set to continue their optimism from last week, when the Dow, the S&P, and the Nasdaq all reported gains of over 3.7%.

Even though the S&P had hardly moved from its early November levels when the election happened, many mega-cap stocks continue to register 52-week highs. We looked at some of these stocks and why they are expected to continue surging up with the earnings season already underway.

To come up with our list of 10 mega-cap stocks that could continue surging post 52-week highs, we only considered stocks that have recently hit their 52-week highs and have a market cap of at least $150 billion.

A data centre room with cloud technology, illustrating the enterprise application software services.

SAP SE (NYSE:SAP)

SAP SE is a technology, applications, and services provider. It provides software solutions for manufacturing, finance, and other services. The company’s share hit a 52-week high recently, highlighting its strong market performance.

It has been a key AI player in the last couple of years. If we look at the company’s past year performance, the stock gained over 60%. TD Cowen also just upgraded the company from Hold to Buy and increased the target price from $240 to $305.

The company has demonstrated a strong financial performance in the recent past. In Q3 total revenues were up 9% in euros, but revenue expectations were not met in terms of USD. GAAP was also higher than expected. Seeing how the stock performed in the previous year, investors will hope the trend continues into 2025.

Overall SAP ranks 2nd on our list of the mega-cap stocks that could continue surging post 52-week highs. While we acknowledge the potential of SAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SAP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.