Trade-Ideas LLC identified Companhia De Saneamento Basico Do Estado De ( SBS) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Companhia De Saneamento Basico Do Estado De as such a stock due to the following factors:

  • SBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • SBS has traded 26.59700000000000130739863379858434200286865234375 options contracts today.
  • SBS is making at least a new 3-day high.
  • SBS has a PE ratio of 5.
  • SBS is mentioned 0.52 times per day on StockTwits.
  • SBS has not yet been mentioned on StockTwits today.
  • SBS is currently in the upper 20% of its 1-year range.
  • SBS is in the upper 35% of its 20-day range.
  • SBS is in the upper 45% of its 5-day range.
  • SBS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on SBS:

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and governmental customers in the state of Sao Paulo. The stock currently has a dividend yield of 1.5%. SBS has a PE ratio of 5. Currently there is 1 analyst that rates Companhia De Saneamento Basico Do Estado De a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Companhia De Saneamento Basico Do Estado De has been 1.8 million shares per day over the past 30 days. Companhia De Saneamento Basico Do Estado De has a market cap of $4.0 billion and is part of the utilities sector and utilities industry. Shares are up 24.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Companhia De Saneamento Basico Do Estado De as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Water Utilities industry. The net income increased by 39.4% when compared to the same quarter one year prior, rising from $261.67 million to $364.71 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Water Utilities industry and the overall market, CIA SANEAMENTO BASICO ESTADO's return on equity exceeds that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • After a year of stock price fluctuations, the net result is that SBS's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $218.04 million or 49.35% when compared to the same quarter last year. Despite a decrease in cash flow CIA SANEAMENTO BASICO ESTADO is still fairing well by exceeding its industry average cash flow growth rate of -94.69%.

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