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Is Deutsche Telekom (DTEGY) Stock Outpacing Its Utilities Peers This Year?

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Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. 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? Let's take a closer look at the stock's year-to-date performance to find out.

Deutsche Telekom AG is one of 104 companies in the Utilities group. The Utilities group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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 #2 (Buy).

The Zacks Consensus Estimate for DTEGY's full-year earnings has moved 6.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that DTEGY has returned about 5.1% since the start of the calendar year. At the same time, Utilities stocks have lost an average of 6.1%. This means that Deutsche Telekom AG is outperforming the sector as a whole this year.

Another stock in the Utilities sector, Pampa Energia (PAM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 27.2%.

Over the past three months, Pampa Energia's consensus EPS estimate for the current year has increased 32.3%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Deutsche Telekom AG belongs to the Diversified Communication Services industry, a group that includes 13 individual companies and currently sits at #140 in the Zacks Industry Rank. On average, stocks in this group have lost 9.3% this year, meaning that DTEGY is performing better in terms of year-to-date returns.

In contrast, Pampa Energia falls under the Utility - Electric Power industry. Currently, this industry has 58 stocks and is ranked #67. Since the beginning of the year, the industry has moved -6.4%.

Deutsche Telekom AG and Pampa Energia could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.


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