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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? Let's take a closer look at the stock's year-to-date performance to find out.
Deutsche Telekom AG is one of 106 companies in the Utilities group. The Utilities group currently sits at #1 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 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 #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DTEGY's full-year earnings has moved 6.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, DTEGY has returned 21% so far this year. Meanwhile, stocks in the Utilities group have gained about 2.6% on average. This means that Deutsche Telekom AG is performing better than its sector in terms of year-to-date returns.
One other Utilities stock that has outperformed the sector so far this year is ENGIE - Sponsored ADR (ENGIY). The stock is up 35.2% year-to-date.
The consensus estimate for ENGIE - Sponsored ADR's current year EPS has increased 5.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Deutsche Telekom AG belongs to the Diversified Communication Services industry, which includes 15 individual stocks and currently sits at #29 in the Zacks Industry Rank. This group has lost an average of 1.2% so far this year, so DTEGY is performing better in this area.
ENGIE - Sponsored ADR, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #40. The industry has moved +4.7% so far this year.
Investors with an interest in Utilities stocks should continue to track Deutsche Telekom AG and ENGIE - Sponsored ADR. These stocks will be looking to continue their solid performance.
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