On the upside, Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (NYSE:SBS) will test short term resistance at around $10.8. On a downside, the share price is likely to find some support, which begins at $9.84. The failure to get near-term support could push it to $9.48. Its 50 day simple moving average (SMA 50) price is $9.43 and its 200-day simple moving average (SMA 200) price is $7.53. The company’s stock currently has a total float of 339.99M shares. Its weekly volatility is hovering around 5.67% and felt 3.54% volatility in price over a month.

SBS stock has been range bound between the range of $10.07 and $10.07 during the whole day. The stock finished Monday at $10.21. The -8.35% downtrend forced its market value to reach at $6.74B. The price went up as high as $10.07 before retreating. Trading activity significantly improved as the volume at ready counter increased to 5,912,117 shares versus 3,188,465 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,319,939 shares. The stock is now 82.97% above against its bear-market low of $5.58 on September 14, 2018. It has retreated -19.98% since it’s 52-week high of $12.25 reached in January. Now the market price is up 3.83% on the year and up 26.52% YTD.

Wall Street’s most bullish Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (NYSE:SBS) analysts are predicting the share price to blow past $15.08 per share during the next 12 months. The current median share price forecast by them is $9.85, suggesting that the stock could increase -3.53% in that time frame. The average price target of $10.77 calls for a nearly 5.48% increase in the stock price.

It had seen a negative analyst call from Citigroup, which downgraded the stock from Neutral to Sell on January 16. Analysts at Citigroup, shed their negative views on May 14 by lifting it fromSell to Neutral. The stock lost favor of JP Morgan analysts who expressed their lack of confidence in it using a downgrade from Overweight to Neutral on April 04.

When looking at valuations, Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (SBS) has a cheap P/E of 13.36x as compared to industry average of 17.25x. Moreover, it trades for 2.11 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.38x price/book and 1.65x price/sales. Compared to others, Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP is in a different league with regards to profitability, having net margins of 12.8%. To put some perspective around this, the industry’s average net margin is 28.54%. SBS’s ROE is 10.7%, which is also considerably worse than the industry’s ROE of 18.95%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.73.

Shares of Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (SBS) have gained 52.2% since the company’s last earnings report. Over the past 9 fiscal quarters, Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (NYSE:SBS) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 4 quarters (33%), whereas at 0 occasion EPS met analyst expectations. SBS last reported earnings on November 08, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.83 per share, -96.52% change on the same period last year. That was worse than consensus for $1.09. Revenue for the recent quarter stood at $3.33 billion, down -6% on last year and above the $3.08 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.36 billion to $3.36 billion, which should be compared with $0 generated last year. EPS is seen in a range of $1.18 to $1.18, against the 0 reported a year ago.