Millicom International Cellular SA (TIGO) is a Great Momentum Stock: Should You Buy?

Zacks Investment Research assigns Millicom International Cellular SA (TIGO) a Zacks Rank #1 (Strong Buy) and a Momentum Style Score of B, citing the firm's methodology that stocks with top Zacks ranks and A/B style scores tend to outperform in the near term. TIGO has shown notable momentum—up 3.59% over the past week and 3.32% over the past month versus its wireless non‑US industry at 0.86% and 1.14%, respectively; it is up 4.67% over the past quarter and 113.11% over the past year versus the S&P 500's 4% and 14.09%—with a 20‑day average volume of 756,143 shares. Analyst estimate revisions have been positive, with the full‑year consensus rising from $6.26 to $7.35 in the last 60 days and two upward revisions for the next fiscal year, supporting Zacks' momentum thesis and positioning TIGO as a highlighted near‑term momentum pick.

Analysis

Zacks Investment Research assigns Millicom International Cellular SA (TIGO) a Zacks Rank #1 (Strong Buy) and a Momentum Style Score of B, citing recent price strength and positive estimate activity. Shares are up 3.59% over the past week and 3.32% over the past month versus the wireless non‑US industry at 0.86% and 1.14%, respectively; TIGO has gained 4.67% over the past quarter and 113.11% over the last year compared with the S&P 500’s 4% and 14.09% performance.

Earnings estimate revisions have been supportive of the momentum signal: the full‑year consensus rose from $6.26 to $7.35 in the last 60 days driven by one upward revision and none lower, and two upward revisions have been recorded for the next fiscal year. Trading activity shows a 20‑day average volume of 756,143 shares, which provides a liquid baseline for trend confirmation.

The combination of strong historical price performance and positive estimate revisions explains Zacks’ bullish short‑term outlook and its claim that similarly rated stocks tend to outperform over a one‑month horizon. This is a short‑horizon, momentum‑driven setup with limited broader market impact (market impact score 0.3); the primary risk is a momentum reversal if estimate upgrades fade or price moves decouple from volume.

Key Decisions for Investors

• Consider establishing or modestly increasing a tactical long position in TIGO given the Zacks #1 rank, B momentum score and 113.11% one‑year gain, but size exposure conservatively because momentum can reverse
• Monitor upcoming earnings and analyst estimate revisions closely—the recent consensus lift from $6.26 to $7.35 and two next‑year upgrades are the key catalysts to validate further upside and should trigger re‑rating if they stall or reverse
• Require price‑volume confirmation before adding to positions (sustained outperformance vs. the wireless non‑US industry and above‑average 20‑day volume of 756,143), and use stop‑loss or trailing stops to protect against rapid momentum reversals