Is NYSE:SBS suited for CANSLIM investing?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS) is suited for growth investing. Investors should of course do their own research, but we spotted CIA SANEAMENTO BASICO DE-ADR showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of NYSE:SBS highlighted

• In the most recent financial report, CIA SANEAMENTO BASICO DE-ADR reported a 621.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The recent q2q revenue growth of 132.0% of CIA SANEAMENTO BASICO DE-ADR showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• Over the past 3 years, CIA SANEAMENTO BASICO DE-ADR has demonstrated 53.74% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a favorable Return on Equity (ROE) of 24.61%, CIA SANEAMENTO BASICO DE-ADR demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• CIA SANEAMENTO BASICO DE-ADR has exhibited strong Relative Strength(RS) in recent periods, with a current 77.24 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. CIA SANEAMENTO BASICO DE-ADR shows promising potential for continued price momentum.
• CIA SANEAMENTO BASICO DE-ADR exhibits a favorable Debt-to-Equity ratio at 0.56. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 45.33% of the total shares held by institutional investors, CIA SANEAMENTO BASICO DE-ADR showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Analyzing the Technical Aspects

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, SBS scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, SBS is only an average performer.

• The long and short term trends are both positive. This is looking good!
• SBS is part of the Water Utilities industry. There are 14 other stocks in this industry. SBS outperforms 84% of them.
• SBS is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SBS is performing more or less in line with the market.
• Looking at the yearly performance, SBS did better than 77% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month SBS has a been trading in the 15.86 - 17.82 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of SBS

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

SBS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Water Utilities industry. SBS scores excellent on profitability, but there are some minor concerns on its financial health. SBS is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make SBS a good candidate for value and growth investing.

Check the latest full fundamental report of SBS for a complete fundamental analysis.

More growth stocks can be found in our CANSLIM screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.