Core Insights - Lumen Technologies, Inc. is set to report its Q2 2025 results on July 31, with a consensus estimate indicating a loss of 24 cents per share and total revenues of $3.13 billion, reflecting a 4.4% year-over-year decline [1] Financial Performance - Lumen has outperformed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 64.5%. However, its shares have decreased by 10.6% over the past six months, contrasting with a 14.5% increase in the Diversified Communication Services industry [2] Factors Influencing Q2 Results - Increased revenues from the North American Grow Business and Wave are expected to enhance Lumen's performance, despite challenges in the legacy business. The rising demand for Lumen's PCF solutions, driven by AI growth, is a positive indicator [3] - The company is progressing with its $8.5 billion PCF projects initiated in 2024, with production ongoing at 57 ILA sites, and 24 sites expected to be completed in Q2 as planned and within budget [4] Strategic Developments - Lumen is simplifying its capital structure by extending debt maturities and reducing its cost of capital, which will lower interest expenses and enhance financial flexibility. The sale of its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion is a significant step in its transformation into a digital enterprise networking company [5] - The company anticipates strong growth in its Quantum business, with plans to launch a new network architecture in late 2025. Lumen aims to save $1 billion by 2027 through streamlining its network and product offerings, reducing its product count from thousands to about 300 [6] Recent Developments - In June 2025, Lumen was selected to provide connectivity for the JUNO Trans-Pacific Cable System, which will enhance capacity between Japan and the United States [11] - A collaboration with IBM to create AI solutions at the edge aims to improve operational efficiency and customer experiences [12] - The launch of DefenderSM Plus, a cybersecurity solution, is designed to protect enterprise environments from various cyber threats [13] Market Positioning - Lumen is focusing on cloud-enabling telecom and expanding its network-as-a-service (NaaS) solutions, leveraging its strong network and integrated services to support growth in the cloud market [9] - Despite ongoing revenue pressures from legacy services and a heavy debt load, Lumen's investments in AI and cloud services are strategic moves to enhance its market position [10]

Group 1 - NiSource (NI) is currently outperforming its peers in the Utilities sector, with a year-to-date return of approximately 14%, compared to the sector average of 11.2% [4][5] - NiSource holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3][5] - The Zacks Consensus Estimate for NiSource's full-year earnings has increased by 0.1% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - The Utilities sector consists of 108 individual stocks and currently has a Zacks Sector Rank of 1, indicating strong overall performance [2] - NiSource is part of the Utility - Electric Power industry, which includes 59 stocks and is ranked 74 in the Zacks Industry Rank, with stocks in this group gaining about 11.2% year-to-date [5] - Another outperforming stock in the Utilities sector is Telefonica (TEF), which has returned 34.3% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][6]

What's Next for Koninklijke KPN? While Koninklijke KPN has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlatio ...

Company Overview - Deutsche Telekom AG (DTEGY) is a notable stock in the Utilities sector, currently holding a Zacks Rank of 2 (Buy) [3] - The company has achieved a year-to-date return of 18.5%, significantly outperforming the average Utilities sector return of 10.8% [4] Industry Performance - Deutsche Telekom AG is part of the Diversified Communication Services industry, which consists of 19 individual stocks and is ranked 41 in the Zacks Industry Rank [6] - The average return for the Diversified Communication Services industry so far this year is 16%, indicating that DTEGY is performing better than its industry peers [6] Analyst Sentiment - Over the past three months, the Zacks Consensus Estimate for DTEGY's full-year earnings has increased by 3%, reflecting improved analyst sentiment and a more positive earnings outlook [3] - In comparison, another stock in the Utilities sector, Energias de Portugal (EDPFY), has outperformed with a year-to-date return of 38.6% and a Zacks Rank of 1 (Strong Buy) [4][5]

Group 1 - Telenor ASA (TELNY) is currently ranked 1 in the Utilities group within the Zacks Sector Rank, indicating strong performance relative to its peers [2] - Telenor ASA has a Zacks Rank of 1 (Strong Buy), with a 11.5% increase in the consensus estimate for full-year earnings over the past 90 days, reflecting improved analyst sentiment [3] - Year-to-date, Telenor ASA has returned 40.8%, significantly outperforming the average 9.1% gain of the Utilities group [4] Group 2 - Telenor ASA is part of the Diversified Communication Services industry, which ranks 16 in the Zacks Industry Rank, and has gained an average of 15.8% this year [5] - In comparison, Tele2 (TLTZY), another Utilities stock, has outperformed with a 52.7% year-to-date return and has a Zacks Rank of 2 (Buy) [4][5] - The Wireline Non-US industry, which includes Tele2, has seen a decline of -29% since the beginning of the year, highlighting the relative strength of Telenor ASA [6]

Group 1 - Investors in Telefônica Brasil S.A. should monitor stock movements due to high implied volatility in options, particularly the Aug. 15, 2025 $7.50 Call [1] - Implied volatility indicates market expectations for significant price movement, suggesting potential upcoming events that could lead to a rally or sell-off [2] - Analysts currently rate Telefônica Brasil as a Zacks Rank 3 (Hold) in the Diversified Communication Services industry, with no earnings estimate increases and one decrease over the last 60 days, lowering the consensus estimate from 13 cents to 12 cents per share [3] Group 2 - The high implied volatility may indicate a developing trade, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as anticipated [4]

Company Performance - Algonquin Power & Utilities (AQN) has returned 32.1% year-to-date, significantly outperforming the average gain of 8.8% in the Utilities sector [4] - The Zacks Consensus Estimate for AQN's full-year earnings has increased by 8.8% over the past quarter, indicating improving analyst sentiment [4] - AQN currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Industry Context - The Utilities group, which includes AQN, ranks 1 within the Zacks Sector Rank, reflecting strong performance among its 109 companies [2] - AQN belongs to the Utility - Electric Power industry, which consists of 60 companies and currently ranks 90 in the Zacks Industry Rank, with an average gain of 8.7% year-to-date [6] - Another outperforming stock in the Utilities sector is Koninklijke KPN NV (KKPNF), which has returned 32.7% year-to-date and also holds a Zacks Rank of 2 (Buy) [5][7]

Group 1 - Investors in Rogers Communications Inc. should monitor stock movements due to high implied volatility in the options market, particularly the July 18, 2025 $40.00 Put option [1] - Implied volatility indicates the market's expectation of future stock movement, suggesting potential significant price changes or upcoming events that could impact the stock [2] - Rogers Communications holds a Zacks Rank 3 (Hold) in the Diversified Communication Services industry, which is in the top 37% of the Zacks Industry Rank, with mixed earnings estimate revisions from analysts [3] Group 2 - The high implied volatility for Rogers Communications may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Group 1 - National Grid (NGG) is a notable stock in the Utilities sector, currently outperforming its peers with a year-to-date gain of approximately 22.6% compared to the sector average of 8.3% [4] - The Utilities group ranks 3 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual companies [2] - National Grid holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] Group 2 - The Zacks Consensus Estimate for National Grid's full-year earnings has increased by 2.9% over the past quarter, reflecting improved analyst sentiment [4] - National Grid is part of the Utility - Electric Power industry, which consists of 60 stocks and currently ranks 68 in the Zacks Industry Rank, with an average gain of 8.4% this year [6] - Another outperforming stock in the Utilities sector is Grupo Televisa (TV), which has seen a year-to-date increase of 32.7% and also holds a Zacks Rank of 2 (Buy) [5][7]

Core Insights - Investors are evaluating Telefonica (TEF) and Telus (TU) for potential value opportunities in the Diversified Communication Services sector [1] Valuation Metrics - Telefonica has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Telus has a Zacks Rank of 3 (Hold) [3] - TEF's forward P/E ratio is 13.39, significantly lower than TU's forward P/E of 21.68, suggesting TEF may be undervalued [5] - TEF has a PEG ratio of 0.78, while TU's PEG ratio is 5.15, indicating TEF's expected earnings growth is more favorable [5] - TEF's P/B ratio is 1.20 compared to TU's P/B of 2.12, further supporting TEF's valuation advantage [6] - Based on these metrics, TEF holds a Value grade of A, while TU has a Value grade of C, making TEF the more attractive option for value investors [6]