Companhia de Saneamento Basico (NYSE:SBS) - A High Growth Momentum Stock with Strong Technical Setup

Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) stands out as a high-growth momentum candidate with a solid technical setup. The company, a leading water and sewage service provider in Brazil, has demonstrated strong earnings and revenue growth while also presenting a favorable chart pattern for potential breakout traders.

Growth Momentum Highlights

• Earnings Growth: SBS reported a staggering 184.2% year-over-year EPS growth (TTM), with recent quarterly EPS growth at 80.8%. The company has consistently beaten earnings estimates, with an average surprise of 103.2% over the last four quarters.
• Revenue Expansion: Revenue growth over the past year reached 43.8%, supported by strong quarterly sales increases, including a 132.4% surge two quarters ago.
• Profitability: Despite some margin fluctuations, the trailing twelve-month profit margin stands at 26.5%, reflecting efficient operations.
• Analyst Revisions: While recent EPS and revenue estimates for next year have seen slight downward revisions, the company’s historical performance suggests resilience.

Technical Strength & Setup

SBS holds a perfect 10 out of 10 Technical Rating, indicating robust price momentum across short and long-term trends. Key technical observations include:

• Trend Strength: Both short-term and long-term trends are positive, with the stock outperforming 93% of the market over the past year.
• Consolidation Pattern: The stock has been trading in a range between $19.55 and $21.14 recently, with reduced volatility signaling a potential breakout.
• Support & Resistance: Key support levels are found at $19.82 and $18.27, while resistance sits near $21.05. A breakout above resistance could signal further upside.
• Institutional Interest: Large players have shown buying interest, reinforcing the bullish setup.

For a deeper technical breakdown, review the full technical report for SBS.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical characteristics.

Disclaimer

This is not investment advice. The observations here are based on current data, and investors should conduct their own research before making decisions.