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Are Utilities Stocks Lagging Deutsche Telekom (DTEGY) 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. Is Deutsche Telekom AG (DTEGY - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Deutsche Telekom AG is one of 103 individual stocks in the Utilities sector. Collectively, these companies sit at #9 in 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Deutsche Telekom AG is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DTEGY's full-year earnings has moved 4.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, DTEGY has gained about 17.4% so far this year. In comparison, Utilities companies have returned an average of 0.6%. This means that Deutsche Telekom AG is outperforming the sector as a whole this year.

Another Utilities stock, which has outperformed the sector so far this year, is E.ON SE (EONGY - Free Report) . The stock has returned 33.4% year-to-date.

In E.ON SE's case, the consensus EPS estimate for the current year increased 5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Deutsche Telekom AG is a member of the Diversified Communication Services industry, which includes 13 individual companies and currently sits at #37 in the Zacks Industry Rank. On average, stocks in this group have gained 14.9% this year, meaning that DTEGY is performing better in terms of year-to-date returns.

E.ON SE, however, belongs to the Utility - Electric Power industry. Currently, this 58-stock industry is ranked #94. The industry has moved -0.9% so far this year.

Investors interested in the Utilities sector may want to keep a close eye on Deutsche Telekom AG and E.ON SE as they attempt to continue their solid performance.


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