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

Transportadora de Gas del Sur SA (NYSE:TGS) has surfaced as a potential candidate for investors following the CANSLIM strategy. The company, which operates a major gas pipeline system in Latin America, meets several key criteria of the growth-focused investment approach. Below, we examine why TGS stands out.

Key CANSLIM Criteria Met by TGS

• Strong Quarterly Growth: TGS reported a 68.1% year-over-year EPS growth and 59.8% revenue growth in its latest quarter, exceeding the CANSLIM threshold of 20-25%.
• Annual Earnings Momentum: The company’s 3-year EPS growth rate of 111.3% highlights sustained profitability, well above the 25% minimum suggested by the strategy.
• High Relative Strength: With a ChartMill Relative Strength score of 81.8, TGS outperforms most of the market, a key trait for CANSLIM stocks.
• Healthy Balance Sheet: A debt-to-equity ratio of 0.21 and ROE of 18.9% reflect strong financial health and efficient capital use.
• Institutional Sponsorship: While institutional ownership is low at 8.8%, this could indicate room for increased institutional interest as growth continues.

Technical and Fundamental Overview

• Fundamentals: TGS earns a fundamental rating of 6/10, with high marks for profitability and financial health. Margins and returns are well above industry averages, though valuation appears stretched.
• Technical Setup: The stock has a technical rating of 4/10, with mixed signals. While long-term performance has been strong (+51.7% over 12 months), recent trends show weakness, and resistance levels loom near $27-$30.

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

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

Disclaimer

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