For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Deutsche Telekom AG (DTEGY) been one of those stocks this year? 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 a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #1. 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 #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DTEGY's full-year earnings has moved 6.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, DTEGY has moved about 22.9% on a year-to-date basis. In comparison, Utilities companies have returned an average of 8.3%. This shows that Deutsche Telekom AG is outperforming its peers so far this year.
Another stock in the Utilities sector, Telefonica (TEF), has outperformed the sector so far this year. The stock's year-to-date return is 32.6%.
In Telefonica's case, the consensus EPS estimate for the current year increased 12.1% 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 #24 in the Zacks Industry Rank. On average, stocks in this group have gained 16.6% this year, meaning that DTEGY is performing better in terms of year-to-date returns. Telefonica is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Deutsche Telekom AG and Telefonica. These stocks will be looking to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deutsche Telekom AG (DTEGY): Free Stock Analysis Report Telefonica SA (TEF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
