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 $17.3 million.
  • SBS has traded 26.477599999999998914290699758566915988922119140625 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 1.4%. SBS has a PE ratio of 5. Currently there are no analysts that rate 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 $4.2 billion and is part of the utilities sector and utilities industry. Shares are up 28.5% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, compelling growth in net income and notable return on equity. 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:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 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.
  • CIA SANEAMENTO BASICO ESTADO has improved earnings per share by 39.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CIA SANEAMENTO BASICO ESTADO increased its bottom line by earning $1.37 versus $0.96 in the prior year. For the next year, the market is expecting a contraction of 60.5% in earnings ($0.54 versus $1.37).
  • Net operating cash flow has decreased to $218.04 million or 49.35% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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