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Is Telephone and Data Systems (TDS) Outperforming Other Utilities Stocks This Year?

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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Telephone and Data Systems (TDS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.

Telephone and Data Systems is one of 111 companies in the Utilities group. The Utilities group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. TDS is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for TDS's full-year earnings has moved 30.69% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that TDS has returned about 12.28% since the start of the calendar year. In comparison, Utilities companies have returned an average of 1.24%. This shows that Telephone and Data Systems is outperforming its peers so far this year.

To break things down more, TDS belongs to the Wireline - National industry, a group that includes 1 individual companies and currently sits at #3 in the Zacks Industry Rank. This group has gained an average of 12.28% so far this year, so TDS is performing on par in this area.

Investors with an interest in Utilities stocks should continue to track TDS. The stock will be looking to continue its solid performance.


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