Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS)

SBS stock forecast: buy or sell

SBS stock outlook

  • Companhia de saneamento Basico Do Estado closed yesterday at $10.92 after merely moving a 0.83%.
  • Price is drawing a scaled uptrend since late March with higher tops and higher bottoms. This uptrend marked a 103.73% gain
  • Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides water and sewage services to residential, commercial, industrial, and governmental customers.
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Please read:
The opinions given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the individual scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative purposes only

SBS stock chart overview

Should I buy Companhia de saneamento Basico Do Estado stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is SBS stock a buy?

Currently, Companhia de saneamento Basico Do Estado stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for SBS in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Companhia de saneamento Basico Do Estado stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our feelings or the noise surrounding the market. We like very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups should not be used for selling short SBS stock

A golden rule is that you must never mantain an operation that shows a greater losses than those expected upon purchase. When to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Companhia de saneamento Basico Do Estado stock?

Currently, Companhia de saneamento Basico Do Estado stock doesn't match any of our preferred sell setups, so if you hold Companhia de saneamento Basico Do Estado shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Companhia de saneamento Basico Do Estado stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the last month for Companhia de saneamento Basico Do Estado

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Technical analysis

Companhia de saneamento Basico Do Estado shares started an uptrend in late March, and gained a gorgeous 103.73%. The price line shows higher highs and higher troughs, and along the way gave some entry points for those who wanted to enter. Latest low was in mid-May, when price bounced at $6.26. Currently, it trades in a consolidation between its last top ($11.56) and its last bottom ($6.26)

SMAs overview

Moving averages are tools for investors to detect momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels as a way to find price points in the stock price action that tend to behave as obstacles, preventing the price of a stock to move up or down. A support level is a level where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue falling until finding another support level. On the other side, a resistance level is where the price tends to find a curb as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, it will rally easily until it hits the next resistance

The current resistance levels are:

  • R1: $10.94 (0.18% above)
  • R2: $10.95 (0.27% above)
  • R3: $11.11 (1.74% above)
  • The current supports are:

  • S1: $10.86 (-0.55% below)
  • S2: $10.83 (-0.82% below)
  • S3: $10.74 (-1.65% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known practice designed by John Bollinger. It is composed of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 56.27. Since RSI lost the overbought zone, Companhia de saneamento Basico Do Estado shares fell a 2.41%

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    Earnings and financials

    Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS) reported EPS for the fiscal Q1 that uplifted Wall St. expectations. Quarterly EPS was $-0.14 per share instead of $-0.16. This quarterly report means an earnings surprise of 12.5%. Forecasted revenue was $755.4 million but Companhia de saneamento Basico Do Estado slightly worsened by 5.73%, reporting $712.1 million.

    Compared to the same quarter last year, EPS was $0.24, so current EPS means a reduction of -158.33%. Revenue collapsed a -22.03% on an annualized basis in the 1st-quarter, from $913.3M to $712.1M last quarter.

    SBS is releasing Q2 earnings report on mid next August. Wall Street estimates an Earnings per Share of $0.14, compared to previous quarter that was $-0.14. Earnings reporting day has a more than usual risk for stock traders as the results posted can gap up or down the price with lower liquidity and not respecting your buy/stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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