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

·2 min read

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. 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? 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 104 different companies and currently sits at #1 in the Zacks Sector Rank. 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 #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DTEGY's full-year earnings has moved 23.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that DTEGY has returned about 11.9% since the start of the calendar year. Meanwhile, the Utilities sector has returned an average of -0.1% on a year-to-date basis. This means that Deutsche Telekom AG is outperforming the sector as a whole this year.

Another stock in the Utilities sector, NRG Energy (NRG), has outperformed the sector so far this year. The stock's year-to-date return is 7.5%.

The consensus estimate for NRG Energy's current year EPS has increased 24.2% over the past three months. 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 12 individual stocks and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have gained about 8% so far this year, so DTEGY is performing better this group in terms of year-to-date returns.

On the other hand, NRG Energy belongs to the Utility - Electric Power industry. This 59-stock industry is currently ranked #94. The industry has moved -1.8% year to date.

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

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