TIM S.A. Sponsored ADR (TIMB) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - TIM S.A. Sponsored ADR (TIMB) has shown strong stock performance, with a 23.7% increase over the past month and a 29.7% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Wireless Non-US industry [1][2]. Financial Performance - TIM has consistently exceeded earnings expectations, reporting an EPS of $0.52 against a consensus estimate of $0.48 in its last earnings report [2]. - For the current fiscal year, TIM is projected to achieve earnings of $1.75 per share on revenues of $5.26 billion, reflecting a 9.38% increase in EPS and a 10.3% increase in revenues. For the next fiscal year, earnings are expected to rise to $1.90 per share on revenues of $5.48 billion, indicating year-over-year changes of 8.76% and 4.2%, respectively [3]. Valuation Metrics - TIM's current valuation metrics indicate a trading multiple of 14.4X current fiscal year EPS estimates, which is above the peer industry average of 13.6X. The stock trades at 6.5X trailing cash flow compared to the peer group's average of 7X, and it has a PEG ratio of 0.77, positioning it favorably for value investors [7]. Zacks Rank and Style Scores - TIM holds a Zacks Rank of 2 (Buy), supported by positive earnings estimate revisions from analysts. The stock also has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6][8].