Sabesp (SBS) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies attractive stocks using financial ratios, while Growth Score assesses a company's financial health and future outlook [3][4] - Momentum Score focuses on price trends and earnings outlook, indicating favorable times for investment [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 and 2, making it essential for investors to utilize Style Scores to narrow down choices [8][9] Stock Highlight: Sabesp (SBS) - Sabesp provides public water and sewage services in São Paulo, Brazil, and is primarily owned by the São Paulo government [11] - SBS holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong potential [12] - The stock has shown a 14.8% increase over the past four weeks, with an upward revision in earnings estimates for fiscal 2024 [12] - SBS has an average earnings surprise of 30.8%, making it a strong candidate for investors [12][13]