CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS) – A High Growth Momentum Stock with Strong Technical Setup

CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS) has been identified as a high-growth momentum stock with a favorable technical setup. The company, a leading water and sewage service provider in Brazil, shows strong earnings momentum alongside a technically sound chart pattern.

Growth Momentum Highlights

• Earnings Growth: SBS reported a trailing twelve-month (TTM) EPS growth of 184.2%, with recent quarterly EPS growth at 80.8%.
• Revenue Expansion: Revenue grew 43.8% year-over-year, supported by strong demand in its core markets.
• Profit Margins: The company’s profit margin improved to 17.6% in the latest quarter, up from 13.8% a year ago.
• Estimate Surprises: SBS has beaten EPS estimates in three of the last four quarters, with an average surprise of 103.2%.

Technical Strength

• Technical Rating: SBS scores a perfect 10 on ChartMill’s Technical Rating, reflecting a strong uptrend in both short and long-term timeframes.
• Relative Strength: The stock outperforms 91% of all stocks and 92% of its industry peers.
• Setup Quality: With a Setup Rating of 8, SBS is consolidating near resistance at $21.11, suggesting a potential breakout opportunity.
• Support Levels: Multiple support zones exist below the current price, including a key area between $20.49 and $20.99, providing a clear stop-loss level.

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

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Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.