Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Sabesp (SBS)
Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides public water and sewage services in the state of São Paulo, Brazil, which includes Sao Paulo, one of the largest cities in the world. The company, which was formed in 1973, is currently responsible for supplying water and collecting and treating sewage in 378 municipalities. Its principal shareholder is the Sao Paulo government, which owns nearly 50.3% of the company's shares.
SBS is a Zacks Rank #2 (Buy) stock, with a Momentum Style Score of A and VGM Score of B. Shares are down 3.4% over the past one week and up 9.4% over the past four weeks. SBS has gained 7.1% in the last one-year period as well. Looking at trading volume, an average of 835,771.13 shares exchanged hands over the last 20 trading days.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for SBS, while the Zacks Consensus Estimate has increased $1.11 to $2.17 per share. SBS also boasts an average earnings surprise of 30.8%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding SBS to their portfolios.
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Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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