Buy $SBS - NRPicks Feb 14
Companhia De Saneamento Basico Do Estado De Sao Paulo is a Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world and the state of Sao Paulo is the majority shareholder of the company.
Waste management companies have certain revenues and could be considered as defensive. In the case of SBS, we have the advantage of low debt and positive net income. The company's revenues have declined due to the pandemic; however, in the long term it should show a recovery.
Fundamentals:
- Value
- 37.1% estimated net earnings growth over the next 3 years.
- ROE 13.8% vs. 7.7% for industry
- P/B 1.3x VS 2.9x industry.
Technicals:
- Price level below SMA 250-200-150
- Williams R% at -41% levels
- RSI (49) Neutral
- +3.8% average upside during the month
The stock price has pulled back to a key $7.29 level without clear fundamentals. At this point, the stock is showing a reversal and change of trend. Finally, the SMA indicator is favorable.
Waste management companies have certain revenues and could be considered as defensive. In the case of SBS, we have the advantage of low debt and positive net income. The company's revenues have declined due to the pandemic; however, in the long term it should show a recovery.
Fundamentals:
- Value
- 37.1% estimated net earnings growth over the next 3 years.
- ROE 13.8% vs. 7.7% for industry
- P/B 1.3x VS 2.9x industry.
Technicals:
- Price level below SMA 250-200-150
- Williams R% at -41% levels
- RSI (49) Neutral
- +3.8% average upside during the month
The stock price has pulled back to a key $7.29 level without clear fundamentals. At this point, the stock is showing a reversal and change of trend. Finally, the SMA indicator is favorable.
Trade closed: stop reached:
19 feb