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Is Deutsche Telekom (DTEGY) Stock Outpacing Its Utilities Peers 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. Has Deutsche Telekom AG (DTEGY - Free Report) been one of those stocks this year? 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 the Utilities sector. This group includes 103 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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 #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DTEGY's full-year earnings has moved 4.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DTEGY has returned 18% so far this year. Meanwhile, stocks in the Utilities group have lost about 2.1% on average. As we can see, Deutsche Telekom AG is performing better than its sector in the calendar year.

Another Utilities stock, which has outperformed the sector so far this year, is E.ON SE (EONGY - Free Report) . The stock has returned 23.8% year-to-date.

The consensus estimate for E.ON SE's current year EPS has increased 11% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Deutsche Telekom AG belongs to the Diversified Communication Services industry, a group that includes 13 individual companies and currently sits at #49 in the Zacks Industry Rank. This group has gained an average of 12.1% so far this year, so DTEGY is performing better in this area.

E.ON SE, however, belongs to the Utility - Electric Power industry. Currently, this 58-stock industry is ranked #81. The industry has moved -3.7% so far this year.

Deutsche Telekom AG and E.ON SE could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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