TRANSPORTADORA DE GAS DEL SUR SA ([NYSE:TGS](https://www.chartmill.com/stock/quote/TGS/profile)) – A CANSLIM candidate with strong fundamentals

Transportadora de Gas del Sur SA (NYSE:TGS) emerged from our CANSLIM stock screen, displaying several characteristics that align with William O’Neil’s growth investing strategy. The Argentine energy company operates gas pipelines across Latin America and has shown notable financial strength. Below, we examine why TGS fits the CANSLIM framework.

Key CANSLIM criteria met by TGS

• Earnings Growth (C & A):

  • Quarterly EPS growth (Q2Q) of 68.07%, well above the 20% minimum threshold.
  • Revenue growth (Q2Q) of 59.85%, exceeding the 25% requirement.
  • Three-year EPS CAGR of 111.26%, demonstrating sustained profitability.

• Financial Health (S & L):

  • Debt-to-equity ratio of 0.21, significantly below the 2.0 limit, indicating low leverage.
  • Return on Equity (ROE) of 18.86%, reflecting efficient capital use.
  • Relative Strength (CRS) of 85.08, placing TGS in the top 15% of market performers.

• Institutional Sponsorship (I):

  • Institutional ownership stands at 8.81%, leaving room for increased institutional interest.

Technical and Fundamental Overview

The stock’s technical rating is neutral (4/10), with recent price action consolidating near support levels. However, its long-term uptrend remains intact, supported by strong fundamentals.

• Profitability: TGS has a solid track record, with a 30.96% profit margin and consistent operating cash flow.
• Valuation: While not cheap, the stock’s growth metrics justify its current pricing.
• Industry Position: TGS outperforms 84% of its peers in the Oil, Gas & Consumable Fuels sector.

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

Our CANSLIM High Growth screener lists more stocks matching these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.