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Deutsche Telekom AG (DTEGY) Stock Sinks As Market Gains: What You Should Know

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Deutsche Telekom AG (DTEGY - Free Report) closed the most recent trading day at $23.45, moving -0.89% from the previous trading session. This change lagged the S&P 500's 0.05% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.

Heading into today, shares of the company had lost 7.36% over the past month, lagging the Utilities sector's gain of 0.33% and the S&P 500's gain of 1.18% in that time.

Investors will be hoping for strength from Deutsche Telekom AG as it approaches its next earnings release.

Investors should also note any recent changes to analyst estimates for Deutsche Telekom AG. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.16% higher within the past month. Deutsche Telekom AG is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Deutsche Telekom AG has a Forward P/E ratio of 12.07 right now. This valuation marks a discount compared to its industry's average Forward P/E of 17.05.

Meanwhile, DTEGY's PEG ratio is currently 0.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Communication Services was holding an average PEG ratio of 3.21 at yesterday's closing price.

The Diversified Communication Services industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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