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Is Deutsche Telekom (DTEGY) Outperforming Other Utilities Stocks This Year?

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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Deutsche Telekom AG (DTEGY - 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.

Deutsche Telekom AG is a member of our Utilities group, which includes 108 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Deutsche Telekom AG is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DTEGY's full-year earnings has moved 1.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that DTEGY has returned about 3.8% since the start of the calendar year. In comparison, Utilities companies have returned an average of -2.5%. As we can see, Deutsche Telekom AG is performing better than its sector in the calendar year.

Sempra (SRE - Free Report) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.3%.

For Sempra, the consensus EPS estimate for the current year has increased 0.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Deutsche Telekom AG belongs to the Diversified Communication Services industry, which includes 14 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have lost 1.4% this year, meaning that DTEGY is performing better in terms of year-to-date returns.

In contrast, Sempra falls under the Utility - Gas Distribution industry. Currently, this industry has 15 stocks and is ranked #83. Since the beginning of the year, the industry has moved +8.1%.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Deutsche Telekom AG and Sempra as they could maintain their solid performance.


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