Back to top

Image: Bigstock

Are Utilities Stocks Lagging Deutsche Telekom (DTEGY) This Year?

Read MoreHide Full Article

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. 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? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.

Deutsche Telekom AG is one of 108 companies in the Utilities group. The Utilities group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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 3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, DTEGY has moved about 21.9% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of 12.4% on a year-to-date basis. This means that Deutsche Telekom AG is outperforming the sector as a whole this year.

Tele2 (TLTZY - 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 63.1%.

The consensus estimate for Tele2's current year EPS has increased 5.9% 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, a group that includes 19 individual stocks and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 17.4% so far this year, so DTEGY is performing better in this area.

On the other hand, Tele2 belongs to the Wireline Non-US industry. This 3-stock industry is currently ranked #1. The industry has moved -22.9% year to date.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Deutsche Telekom AG and Tele2 as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Deutsche Telekom AG (DTEGY) - free report >>

Tele2 (TLTZY) - free report >>

Published in