Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: TIM S.A. Sponsored ADR (TIMB) - TIMB currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The stock has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook based on historical performance [3] Performance Metrics - Over the past week, TIMB shares increased by 2.31%, outperforming the Zacks Wireless Non-US industry, which rose by 1.36% [5] - In a longer timeframe, TIMB's monthly price change is 4.33%, compared to the industry's 1.77% [5] - Over the last quarter, TIMB shares have risen by 8.95%, and over the past year, they have increased by 62.13%, while the S&P 500 has only moved 3.76% and 14.96%, respectively [6] Trading Volume - TIMB's average 20-day trading volume is 433,489 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for TIMB have been revised upwards, increasing the consensus estimate from $1.40 to $1.52 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, TIMB is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Current Challenges - Increased infrastructure spending has compromised short-term margins due to aggressive promotional expenses and a decline in linear TV subscribers, leading firms to diversify from legacy telecom services [4] - High raw material prices and geopolitical tensions have affected profitability, with price-sensitive competition expected to intensify [6] Future Prospects - Companies like América Móvil, Telia, and TIM are positioned to benefit from rising demand for scalable infrastructure and accelerated 5G deployment [2] - The industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, gaining 43.1% over the past year compared to 16.3% and 27.3% respectively [9] Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.13X, significantly lower than the S&P 500's 8.33X and the sector's 10.31X [12] Notable Companies - **América Móvil**: Leading telecommunications provider in Latin America, with a 54.1% stock gain over the past year and a Zacks Rank 1 (Strong Buy) [15] - **Telia**: Provides mobile services in Northern Europe, with a 39.3% stock gain and a Zacks Rank 3 (Hold) [18] - **TIM**: Focused on 5G rollout in Brazil, with a 63% stock gain and a Zacks Rank 1 (Strong Buy) [20]

Core Insights - Millicom International Cellular SA (TIGO) reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.55 per share, representing an earnings surprise of -38.18% [1][2] - The company posted revenues of $1.42 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.14%, but down from $1.43 billion year-over-year [2] - The stock has increased approximately 84.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Performance - Over the last four quarters, Millicom has only surpassed consensus EPS estimates once [2] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $1.42 billion, and for the current fiscal year, it is $6.26 on revenues of $5.57 billion [7] Market Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The Zacks Rank for Millicom is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Wireless Non-US industry, to which Millicom belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Amer Movil (AMX) is currently outperforming the Computer and Technology sector, with a year-to-date return of 48.2% compared to the sector's average gain of 24.4% [4]. Company Performance - Amer Movil is ranked 3 in the Zacks Sector Rank among 606 companies in the Computer and Technology group [2]. - The Zacks Rank for Amer Movil is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - Over the past 90 days, the Zacks Consensus Estimate for Amer Movil's full-year earnings has increased by 2.3% [3]. Comparative Analysis - The Wireless Non-US industry, which includes Amer Movil, is ranked 98 in the Zacks Industry Rank and has an average year-to-date gain of 37.2% [5]. - In comparison, Micron (MU), another outperforming stock in the sector, has returned 133.5% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5].

Company Overview - TIM S.A. Sponsored ADR (TIMB) is based in Rio De Janeiro and operates in the Computer and Technology sector, with a year-to-date share price change of 82.74% [3] - The company currently pays a dividend of $0.09 per share, resulting in a dividend yield of 4.03%, which is significantly higher than the Wireless Non-US industry's yield of 2.6% and the S&P 500's yield of 1.5% [3] Dividend Performance - TIMB's current annualized dividend of $0.87 represents a 56.5% increase from the previous year [4] - Over the past five years, TIMB has increased its dividend three times on a year-over-year basis, averaging an annual increase of 9.26% [4] - The company's current payout ratio is 60%, indicating that it pays out 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TIMB's earnings in 2025 is $1.38 per share, with an expected increase of 14.05% from the previous year [5] - The company is positioned as a strong dividend play, appealing to income investors due to its solid earnings growth prospects [6] Investment Considerations - High-yielding stocks, like TIMB, may face challenges during periods of rising interest rates, but the company remains a compelling investment opportunity [6] - TIMB holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4]. Key Players - KDDI Corporation, Vodafone Group, and Millicom International Cellular are positioned to benefit from the rising demand for scalable infrastructure due to the proliferation of IoT and accelerated 5G deployment [2]. Industry Description - The industry includes mobile telecommunications and broadband service providers that offer voice services, value-added services like IoT, content streaming, and mobile payment solutions, as well as IT solutions and cable/satellite pay television subscriptions [3]. Current Challenges - Profit margins are being affected by high raw material prices, prolonged geopolitical tensions, and proposed tariffs, leading to a demand-supply imbalance and increased operational costs [4]. - The rise of over-the-top service providers is intensifying price-sensitive competition, which may limit customer retention and impact financial results [4]. Network Developments - There is a significant demand for network convergence, requiring traditional carriers to invest heavily in advanced networking architecture to meet the growing demand for coverage and quality [5]. - Continuous network upgrades are necessary to maintain performance standards, as telecom services are considered necessities and show weak correlation to macroeconomic factors [5]. Evolving Business Models - Increased spending on infrastructure upgrades is compromising short-term margins, leading companies to diversify from legacy services to business and enterprise opportunities [6]. - Companies are investing in software-defined networks and new Cloud Core architecture to enhance their service offerings [6]. Industry Performance - The Zacks Wireless Non-US industry currently holds a Zacks Industry Rank of 166, indicating it is in the bottom 33% of over 250 Zacks industries, suggesting bearish near-term prospects [7][8]. - Over the past year, the industry has gained 20.2%, outperforming the S&P 500's 16.1% but lagging behind the broader Zacks Computer and Technology sector's 21.9% [9]. Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.22X, significantly lower than the S&P 500's 8.37X and the sector's 9.92X [11]. Notable Companies - **KDDI Corporation**: Focuses on 5G communications and aims for growth in finance, energy, and healthcare, with a stock gain of 12.6% over the past year [14]. - **Vodafone Group**: Engages in telecommunications across Europe and has a long-term earnings growth expectation of 20.1%, with a stock gain of 20.4% [15]. - **Millicom International Cellular**: Provides a range of digital services in Latin America and has seen a stock gain of 74.7% in the past year [19].

Core Insights - Millicom International Cellular SA (TIGO) reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.54 per share, but showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of -5.56% [1] - The company posted revenues of $1.37 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.81% and a decrease from $1.46 billion year-over-year [2] - Millicom's stock has increased approximately 59.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.61 for the coming quarter and $2.68 for the current fiscal year, alongside revenues of $1.38 billion and $5.52 billion respectively [7] - The estimate revisions trend for Millicom was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Wireless Non-US industry, to which Millicom belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: TIM S.A. Sponsored ADR (TIMB) - TIMB currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The stock has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, TIMB shares increased by 5.47%, outperforming the Zacks Wireless Non-US industry, which rose by 1.56% [5] - In a longer timeframe, TIMB shares have gained 26.32% over the past quarter and 29.88% over the last year, while the S&P 500 only increased by 8.33% and 12.92%, respectively [6] Trading Volume - The average 20-day trading volume for TIMB is 440,041 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the last two months, 2 earnings estimates for TIMB have been revised upwards, while only 1 estimate was revised downwards, leading to an increase in the consensus estimate from $1.31 to $1.37 [9] - For the next fiscal year, there have been 2 upward revisions with no downward revisions during the same period [9] Conclusion - Considering the performance metrics and earnings outlook, TIMB is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions due to geopolitical conflicts [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Future Trends - Network convergence is driving significant investments from telecom and cloud service providers to meet the growing demand for coverage, speed, and quality in mobile broadband and home internet solutions [4] - Continuous network upgrades and optimization are essential to maintain performance standards, as telecom services are considered necessities with weak correlation to macroeconomic factors [4] Challenges - The industry is currently facing high production costs due to a shortage of chips and increased raw material prices influenced by geopolitical conflicts, which have negatively impacted profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Growth Strategies - Companies in the industry are focusing on subscriber growth, churn management, and enhancing customer loyalty through unlimited plans and improved network connectivity [6] - Strategic acquisitions and geographical expansion are key strategies for increasing market presence and revenue [6] Industry Performance - The Zacks Wireless Non-US industry has a Zacks Industry Rank of 44, placing it in the top 18% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - However, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a gain of only 3.3% [9] Valuation Metrics - The industry has a trailing 12-month Price/Book (P/B) ratio of 1.06X, significantly lower than the S&P 500's 7.82X and the sector's 9.09X [12] Notable Companies - TIM S.A. is a leading communication service provider in Brazil, focusing on aggressive 5G rollout and aiming for a long-term earnings growth expectation of 16.1% [15] - Ceragon Networks Ltd. specializes in wireless backhaul and fronthaul solutions, providing efficient network rollout and optimization services [16] - PLDT Inc. is the leading telecommunications provider in the Philippines, expanding its fiber network and aiming for a long-term earnings growth expectation of 7.5% [19]