A strong stock as of late has been TIM S.A. Sponsored ADR (TIMB). Shares have been marching higher, with the stock up 11.9% over the past month. The stock hit a new 52-week high of $28.22 in the previous session. TIM has gained 43.8% since the start of the year compared to the -1.2% move for the Zacks Computer and Technology sector and the 30.9% return for the Zacks Wireless Non-US industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 10, 2026, TIM reported EPS of $0.52 versus consensus estimate of $0.48.
For the current fiscal year, TIM is expected to post earnings of $1.88 per share on $5.33 in revenues. This represents a 17.5% change in EPS on a 11.83% change in revenues. For the next fiscal year, the company is expected to earn $2.07 per share on $5.56 in revenues. This represents a year-over-year change of 10.41% and 4.19%, respectively.
Valuation Metrics
While TIM has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
TIM has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 6.6X versus its peer group's average of 6.3X. Additionally, the stock has a PEG ratio of 0.72. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making TIM an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, TIM currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TIM meets the list of requirements. Thus, it seems as though TIM shares could have potential in the weeks and months to come.
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TIM S.A. Sponsored ADR (TIMB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).