TRANSPORTADORA DE GAS DEL SUR SA ([NYSE:TGS](https://www.chartmill.com/stock/quote/TGS/profile)) – A CANSLIM Candidate with Strong Growth Metrics

Transportadora de Gas del Sur SA (NYSE:TGS) surfaced in our CANSLIM stock screen, displaying several characteristics that align with William O’Neil’s growth investing strategy. The company operates Latin America’s largest natural gas pipeline network and has shown impressive financial and technical performance. Below, we examine why TGS fits the CANSLIM criteria.

Key CANSLIM Criteria Met by TGS

• Earnings Growth (C & A): TGS reported a 68.1% year-over-year EPS growth for the latest quarter, well above the CANSLIM minimum of 20%. Revenue growth was equally strong at 59.8%. Over the past three years, EPS has grown at an annualized rate of 111.3%, far exceeding the 25% threshold.
• Profitability (A): The company’s Return on Equity (ROE) of 18.9% is strong, outperforming 82% of its peers in the Oil, Gas & Consumable Fuels industry.
• Relative Strength (L): TGS has a ChartMill Relative Strength score of 91, meaning it outperforms 91% of all stocks—a hallmark of market leadership.
• Institutional Sponsorship (I): Institutional ownership stands at 8.9%, leaving room for increased institutional buying.
• Debt Management (S): With a Debt/Equity ratio of 0.21, TGS maintains a conservative capital structure, well below the CANSLIM-recommended maximum of 2.

Technical and Fundamental Overview

• Technical Rating (7/10): The stock’s long-term trend is positive, though short-term action has been neutral. It trades near the middle of its 52-week range but remains a top performer in its sector.
• Fundamental Rating (6/10): TGS scores well on profitability and financial health, with strong margins and liquidity. However, its valuation appears stretched relative to industry peers.

For a deeper dive, review the full technical analysis and fundamental report.

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Disclaimer

This is not investing advice! The observations here are based on data at the time of writing. Always conduct your own research before making investment decisions.