SABESP Shares Soar 1.85% Ahead of Earnings

SABESP(SBS) shares rose 1.85% intraday, reaching their highest level since April 2013, marking a fourth consecutive day of gains and a 3.88% increase over the past four days.

The strategy of buying SBS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.99% annualized return and a 37.46% peak-to-trough gain. However, it underperformed the benchmark, indicating room for improvement in the strategy.

SABESP's recent stock performance has been robust, with positive signals from both short and long-term moving averages. The stock has shown a buy signal from a pivot bottom point on April 8, 2025, indicating a strong upward trend. Despite being overbought on the RSI14 indicator at 82, the trend suggests a minimal chance of a major correction.

Support levels for SABESP are identified at $19.21 and $17.86, with a recommended stop-loss at $19.53. This indicates a medium level of risk due to average daily volatility. Investors are advised to monitor these levels closely as they navigate the stock's performance.

SABESP is scheduled to release its earnings on May 12, 2025, with an expected EPS of $0.383. The earnings release is anticipated to cause a possible swing of +/- 3.59% in the stock price, making it a critical event for investors to watch.

Analysts have upgraded SABESP from a Buy to a Strong Buy candidate, reflecting positive technical conditions and expectations for further gains over the next three months. This upgrade underscores the confidence in the company's future performance and its potential for continued growth.