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Has Deutsche Telekom (DTEGY) Outpaced Other Utilities Stocks This Year?

Zacks Equity Research
·2 min read

The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Deutsche Telekom AG (DTEGY) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Deutsche Telekom AG is one of 108 individual stocks in the Utilities sector. Collectively, these companies sit at #9 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. 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 means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Based on the latest available data, DTEGY has gained about 7.6% so far this year. Meanwhile, stocks in the Utilities group have lost about 2% on average. As we can see, Deutsche Telekom AG is performing better than its sector in the calendar year.

Another stock in the Utilities sector, TransAlta (TAC), has outperformed the sector so far this year. The stock's year-to-date return is 2.5%.

Over the past three months, TransAlta's consensus EPS estimate for the current year has increased 66.1%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Deutsche Telekom AG belongs to the Diversified Communication Services industry, which includes 14 individual stocks and currently sits at #99 in the Zacks Industry Rank. On average, this group has gained an average of 0.4% so far this year, meaning that DTEGY is performing better in terms of year-to-date returns.

TransAlta, however, belongs to the Utility - Electric Power industry. Currently, this 61-stock industry is ranked #137. The industry has moved -2.3% so far this year.

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


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Zacks Investment Research