Back to top

Image: Bigstock

Deutsche Telekom AG (DTEGY) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Deutsche Telekom AG (DTEGY - Free Report) closed the most recent trading day at $21.85, moving +0.97% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.

Prior to today's trading, shares of the company had lost 4.12% over the past month. This has lagged the Utilities sector's gain of 1.04% and the S&P 500's gain of 4.67% in that time.

Deutsche Telekom AG will be looking to display strength as it nears 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.16% lower within the past month. Deutsche Telekom AG is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Deutsche Telekom AG's current valuation metrics, including its Forward P/E ratio of 12.02. Its industry sports an average Forward P/E of 14.56, so we one might conclude that Deutsche Telekom AG is trading at a discount comparatively.

Investors should also note that DTEGY has a PEG ratio of 1.82 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY's industry had an average PEG ratio of 2.77 as of yesterday's close.

The Diversified Communication Services industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.

To follow DTEGY in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Deutsche Telekom AG (DTEGY) - free report >>

Published in