Atmos Energy Outperforms Utilities Sector YTD, Deutsche Telekom AG Also Outperforms Industry

Atmos Energy (ATO) outperformed the Utilities sector this year with a 18.8% return, compared to the sector's 13% average. The company's Zacks Rank of #2 (Buy) and a 2.4% increase in full-year earnings estimates signal improving analyst sentiment. Deutsche Telekom AG (DTEGY) also outperformed the sector with a 22.3% return and a Zacks Rank of #2 (Buy).

Natural gas distributor Atmos Energy Corporation (ATO) and telecommunications giant Deutsche Telekom AG (DTEGY) have both demonstrated strong performance in the Utilities sector during 2025. Atmos Energy's stock has surged by 18.8% compared to the sector's average return of 13%, while Deutsche Telekom AG has seen a 22.3% return. Both companies have received positive analyst sentiment, reflected by their Zacks Rank of #2 (Buy) and an increase in full-year earnings estimates.

Atmos Energy, based in Dallas, Texas, provides natural gas marketing, procurement, and storage services to large customers. The company's stock has outperformed the broader market, gaining 27.2% over the past year, compared to the S&P 500 Index's 14.3% increase. In the third quarter of 2025, Atmos Energy reported solid earnings, with revenue rising 19.6% year-over-year to $838.8 million and net income increasing 12.6% to $186.4 million. The company raised its full-year EPS guidance to $7.35–$7.45 and declared a quarterly dividend of $0.87 per share, indicating robust financial health and stable growth [1].

Deutsche Telekom AG, headquartered in Bonn, Germany, announced a new 5G+ streaming video game offering developed in partnership with Nvidia. This initiative aims to provide mobile access to online games with stable response times, leveraging Nvidia's GeForce Now cloud gaming platform and Deutsche Telekom's 5G+ network. The company's mobile gaming market is growing rapidly, with around 24.6 million people now playing games on smartphones or tablets [3].

Analysts remain bullish on both companies, with a consensus "Moderate Buy" rating for Atmos Energy and a "Buy" rating for Deutsche Telekom AG. The positive outlook is driven by factors such as strong earnings growth, robust dividend policies, and strategic investments in emerging technologies. As the Utilities sector continues to evolve, these companies' performance highlights the potential for growth and innovation in the industry.

References:
[1] https://www.barchart.com/story/news/34391050/atmos-energy-stock-is-wall-street-bullish-or-bearish
[2] https://oilprice.com/Alternative-Energy/Renewable-Energy/US-Power-Sector-Green-Capex-Projected-to-Reach-2-Trillion.html
[3] https://www.marketscreener.com/news/deutsche-telekom-negotiating-5g-mobile-gaming-offering-with-nvidia-ce7c51ddda80f427