Cia Saneamento Basico (NYSE:SBS) – A Strong Growth Candidate Meeting Minervini’s Trend Template

Cia Saneamento Basico (NYSE:SBS) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, which provides water and sewage services in Brazil, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-focused investors.

Why SBS Fits the Minervini Trend Template

Minervini’s Trend Template focuses on stocks exhibiting strong uptrends, supported by key moving averages and relative strength. SBS meets these criteria:

• Price Above Key Moving Averages:

  • Current price ($20.54) is above the 50-day ($19.29), 150-day ($17.04), and 200-day ($17.02) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.

• Upward-Trending Averages:

  • The 200-day MA has been rising, reinforcing a long-term uptrend.

• Strong Relative Strength:

  • SBS has a ChartMill Relative Strength (CRS) score of 93.54, indicating it outperforms 93% of all stocks.

• Price Near 52-Week High:

  • Trading at $20.54, SBS is within 3% of its 52-week high ($21.14).
  • The stock is up 45% over the past year.

High Growth Momentum Fundamentals

Beyond technical strength, SBS shows robust earnings and revenue growth:

• Earnings Growth:

  • EPS (TTM) grew 184% year-over-year.
  • Quarterly EPS growth accelerated sharply, with recent quarters showing 80.8% and 620.9% increases.

• Revenue Expansion:

  • Revenue (TTM) rose 43.8% YoY.
  • Quarterly sales growth has been strong, with recent quarters up 28.6% and 132.4%.

• Profit Margins:

  • Net margin improved to 26.5% in the last fiscal year, up from 13.8% the prior year.

Technical Outlook

According to ChartMill’s technical report, SBS has a perfect 10/10 technical rating and an 8/10 setup rating, indicating consolidation before a potential breakout. Key levels:

• Support: $19.82 (horizontal), $18.36 (trendline).
• Resistance: $20.66–$21.05 (trendline & moving averages).

A breakout above $21.06 could signal further upside, with a stop-loss suggested near $19.90.

For a deeper technical analysis, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.