TIM (TIMB) Surges 6.0%: Is This an Indication of Further Gains?

TIM S.A. Sponsored ADR (TIMB) shares soared 6% in the last trading session to close at $17.8. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.8% loss over the past four weeks.

The uptrend is largely due to the aggressive 5G rollout throughout the country. The company aims to continue using the asset-light model to expand its broadband footprint while evolving its B2B verticals, bringing IOT connectivity and solutions to Brazil’s infrastructure.

This company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -6.5%. Revenues are expected to be $1.37 billion, up 11.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For TIM, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TIMB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

TIM is a member of the Zacks Wireless Non-US industry. One other stock in the same industry, Ceragon Networks (CRNT), finished the last trading session 5.2% higher at $2.21. CRNT has returned 1.5% over the past month.

Ceragon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.04. Compared to the company's year-ago EPS, this represents a change of +100%. Ceragon currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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