Sabesp (SBS) Is a Great Choice for 'Trend' Investors, Here's Why

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting that price movements should be supported by strong fundamentals and positive earnings estimates [1][2]. Group 1: Stock Performance - Sabesp (SBS) has shown a solid price increase of 30.3% over the past 12 weeks, indicating strong investor interest in the stock [4]. - The stock has also maintained a price increase of 0.9% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, SBS is trading at 89.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - SBS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like SBS that are on an uptrend supported by strong fundamentals [3]. - Investors are encouraged to explore other stocks that meet similar criteria, as there are over 45 Zacks Premium Screens available for different investing styles [8].