For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Deutsche Telekom AG (DTEGY) one of those stocks right now? 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 111 individual stocks and currently holds a Zacks Sector Rank of #13. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the 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 1.9% higher within the past quarter. 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 4.2% on a year-to-date basis. At the same time, Utilities stocks have gained an average of 3.2%. This shows that Deutsche Telekom AG is outperforming its peers so far this year.
One other Utilities stock that has outperformed the sector so far this year is Energias de Portugal (EDPFY). The stock is up 17.2% year-to-date.
For Energias de Portugal, the consensus EPS estimate for the current year has increased 1.6% 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, which includes 18 individual stocks and currently sits at #205 in the Zacks Industry Rank. On average, this group has lost an average of 8.4% so far this year, meaning that DTEGY is performing better in terms of year-to-date returns.
On the other hand, Energias de Portugal belongs to the Utility – Electric Power industry. This 63-stock industry is currently ranked #158. The industry has moved +4% year to date.
Investors interested in the Utilities sector may want to keep a close eye on Deutsche Telekom AG and Energias de Portugal as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).