Why Mark Minervini may look into CIA SANEAMENTO BASICO DE-ADR (NYSE:SBS)

Growth 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 Minervini growth screen, so it may be worth spending some more time on it.

Minervini Trend Template Analysis.

SBS checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of SBS

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. SBS was assigned a score of 6 for growth:

Explosive Earnings Growth

• SBS has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 621.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• Accelerating EPS growth for SBS: the current Q2Q growth of 621.0% exceeds the previous quarter Q2Q growth of 62.39%.
• EPS growth accelerated for 2 quarters in a row.
• SBS has experienced 213.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• SBS has achieved 53.74% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• SBS has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 132.0%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• The sales growth of SBS is accelerating: the current Q2Q growth of 132.0% is above the previous quarter Q2Q growth of 9.67%. Sales momentum and acceleration are key for high growth systems.
• With notable 1-year revenue growth of 46.76%, SBS exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• Over the past 3 months, analysts have adjusted their EPS Estimate for SBS with a 27.69% change. This highlights the evolving outlook on the company's EPS potential.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, SBS showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, SBS showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• With a favorable Return on Equity (ROE) of 24.61%, SBS demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• A Debt/Equity ratio of 0.56 highlights SBS's commitment to maintaining financial stability.

Market Strength

• The Relative Strength (RS) of SBS has consistently been strong, with a current 87.91 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Looking at the Setup

ChartMill also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, SBS exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although SBS has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of SBS contains the most current technical analsysis.

Concluding

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.