Deutsche Telekom (DTEGY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Investors interested in stocks from the Diversified Communication Services sector have probably already heard of Deutsche Telekom AG (DTEGY) and Swisscom AG (SCMWY). But which of these two stocks is more attractive to value investors?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Here is how Deutsche Telekom AG (DTEGY) and Energias de Portugal (EDPFY) have performed compared to their sector so far this year.
The accelerated pace of 5G deployment and demand for scalable infrastructure should help the Zacks Diversified Communication Services industry thrive despite several headwinds. DTEGY, SHEN and VEON are well-positioned to make the most of the infrastructure upgrade for seamless connectivity.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Deutsche Telekom has over two-thirds of the business in the U.S. Over the last five years, most of the top-line and EBITDA growth came from this market. DTEGY and the T-Mobile U.S. subsidiary have been trading at a premium in comparison with AT&T and Verizon. The solid performance justifies this. DTEGY'S Q2 performance was again solid with growth rates in the U.S. exceeding the outlook. In other regions, performance was normal.
Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY) and Swisscom AG (SCMWY). But which of these two companies is the best option for those looking for undervalued stocks?
Deutsche Telekom AG (DTEGY) Q2 2026 Earnings Call Transcript
Deutsche Telekom is upgraded to 'BUY' with a €28/share ($32) price target, reflecting improved valuation after recent declines. DTEGY's organic growth is limited to 3-4%, with higher AEPS growth projections mainly driven by buybacks rather than true operational expansion. Current valuation below 13x P/E and a 3.76% yield make DTEGY attractive as an income-oriented, conservatively run telco—not a growth stock.
Deutsche Telekom (DTEGY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.