SBS provides sewage services as well as treated water and water management services to residential, commercial, industrial, and governmental customers in Brazil’s state of São Paulo. SBS also provides services to other municipalities and consulting services in Panama and Honduras through a partnership. The company is headquartered in São Paulo, Brazil.

The company’s fourth-quarter fiscal 2024 earnings report showed a huge 172% jump in net profit and an operational cash flow increase of 53%. SBS has been investing in growth too, as it recently doubled its authorized supplier base. Healthy cash flow management, including taking steps to end legacy discounts, should help the company’s revenue picture and fund its 3.22% forward dividend yield

It’s no wonder SBS shares are up 41% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying SABESP Shares

Institutional volumes reveal plenty. Recently, SBS has enjoyed strong investor demand, which we believe to be institutional support.

The green bar signals unusually large volumes in SBS shares. It reflects our proprietary inflow signal, pushing the stock higher:Source: www.mapsignals.com

Plenty of materials names are under accumulation right now. But there’s a powerful fundamental story happening with SABESP.

SABESP Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, SBS has had strong sales and earnings growth:

3-year sales growth rate (+23%) 3-year EPS growth rate (+70%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +37.1%.

Now it makes sense why the stock has been powering to new heights. SBS has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

SABESP has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times recently. The blue bars below show when SBS was a top pick…lifting with Big Money support:Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

SABESP Price Prediction

The SBS rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Story Continues

Disclosure: the author holds no position in SBS at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

This article was originally posted on FX Empire

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