Like a Phoenix Rising from the Ashes: Deutsche Telekom, Almonty and Abbott Are Back on Track

Deutsche Telekom: The Breakout from the Valley of Tears

Since early March, Deutsche Telekom shares have been stuck in a persistent downtrend. Weighed down by the merger with its subsidiary T-Mobile US, which appears to have failed for the time being, and concerns about the subsidiary's business performance, the share price hovered for months below a resistance zone around EUR 27.30—the upper boundary of a downtrend line at which several previous recovery attempts had failed.

The turnaround came on August 6 with the second-quarter results. Revenue rose 4.4% to EUR 29.9 billion, and adjusted net income climbed 11.1% to EUR 2.8 billion, corresponding to earnings per share of EUR 0.58. What is more, the company raised its free cash flow forecast for the current year to around EUR 20 billion and increased its ongoing share buyback program from EUR 2 billion to up to EUR 5 billion. The stock responded with a price jump of just under 6%, breaking through exactly the resistance zone where it had repeatedly faltered before.

Since then, the recovery has continued. The T-share is currently trading at around EUR 29.03 and is edging closer to the resistance level at EUR 29.44. It would still have about 18% upside potential to reach the 52-week high of EUR 34.36, which the stock hit at the end of February. The average analyst price target is actually EUR 37.34, signaling that experts still have high hopes for Deutsche Telekom in the medium term. The recent acquisition of the Polish broadband providers Fiberhost and Inea, another building block of the European convergence strategy, provided additional momentum.

Almonty Industries: The West's Key Stock Gains Momentum

Tungsten producer Almonty Industries has also had a difficult summer: from a record high of USD 24.40 in April, the share slipped to USD 10.74 by the end of July—partly due to technical factors such as hedging transactions related to an USD 800 million convertible senior notes offering. The turnaround came with the quarterly results on August 11. Revenue surged 498% to USD 43.0 million, and adjusted earnings per share turned from a loss of USD 0.30 to a profit of USD 0.62. Most of the reported revenue still came from the established Panasqueira Mine in Portugal, whose revenues rose by 221% in the first quarter alone. The Sangdong Project in South Korea, which is far more significant for Western raw material security, did not begin ore processing until the end of June and will therefore not realize its full revenue potential until the coming quarters—so the real earnings story is yet to come.

Tungsten is one of the metals indispensable to the modern defense industry. Due to its extreme hardness and heat resistance, it is used in armor-piercing ammunition, rocket engines, and heavy-duty components for the aerospace industry. The problem: China controls more than 80% of global production. Almonty Industries, originally based in Canada, has emerged as one of the West's key stocks in this complex landscape. The company, which has since relocated its headquarters to the US, is one of the few producers outside China capable of supplying Western defense industries and high-tech manufacturers with this highly critical metal. In addition to its mines already operating in South Korea and Portugal, the company is developing additional projects, for example in Spain and the US state of Montana.

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The stock owes its definitive breakout from the downtrend to another piece of news. On August 17, Almonty announced a share repurchase program of up to USD 300 million—for up to 14.4 million of its own shares, roughly 5% of the outstanding shares. CEO Lewis Black justified the move by stating that the current share price does not even come close to reflecting the intrinsic value of the tungsten deposits and the operational progress in Sangdong. Since then, the share price has climbed from around USD 15 to just under USD 19. From there, it would still be about a 30% climb to the record high of USD 24.40—a distance that is no longer unrealistic following the spectacular comeback of recent weeks. And here, too, analysts' price targets exceed the previous high. The consensus puts the shares' average price at USD 26.94, and experts at the Augsburg-based research firm GBC Research have even raised their price target from USD 20.89 to USD 30.00 following recent developments.

Abbott Laboratories: The Dividend Aristocrat Fights Its Way Back

Hardly any stock illustrates more clearly than the US pharmaceutical and medical technology company Abbott Laboratories that even a dividend aristocrat can fall out of favor on the stock market once sentiment has shifted. Despite solid figures and raised forecasts, the share lost as much as 40% of its value against its 52-week high at times over the course of the year. Two factors weighed particularly heavily: the recall of certain batches of blood glucose meters at the end of 2025, and price increases in the nutrition business, which the market initially failed to reward. Both issues have since been resolved.

Here, too, the turnaround came with the second-quarter results. Revenue rose 13% to USD 12.6 billion, and adjusted earnings per share of USD 1.31 exceeded expectations of USD 1.29. The key factor was the upward revision of the full-year forecast to adjusted earnings per share of USD 5.45 to USD 5.60—a clear signal that the feared slowdown in growth in the medical technology sector is dissipating. The share jumped about 10% on July 16, the day of the announcement, and has continued to recover since then. On August 24, it reached a new six-month high of about USD 116.67. It would still need to rise by about 18% to reach the 52-week high of USD 137.49 set in September 2025. The upward trend that has been developing since early August remains intact.

Analyst estimates reveal an interesting difference compared to Telekom and Almonty. At around USD 120, the experts' average price target is only slightly above the current price and significantly closer to the status quo than to the previous high. What is striking, however, is a pattern within the analyst estimates themselves. The more recent the price targets, the higher they are, with current estimates in the range of USD 135—and thus almost back at the 52-week high. This suggests that the Wall Street community is only gradually factoring the operational progress into its models.

Doubts Have Been Dispelled; the Path Upward Is Clear

For all three stocks, it was ultimately the same factor that brought about the turnaround: concrete, convincing quarterly results that operationally substantiated a story that had previously been met with skepticism. For Deutsche Telekom and Almonty, it was the combination of growth and capital returns; for Abbott, it was the confirmation that the supposed problems were only temporary. The recovery was most dynamic at Almonty, as the company provided proof that years of development work are now paying off in real cash flows—mind you, so far predominantly from its established business in Portugal, while Sangdong, the actual growth driver, is only just getting started. Despite the recent steep rise in its share price, Almonty shares still have the longest way to go, relative to others, to reach its previous record high. As with Deutsche Telekom, analysts even believe the tungsten producer is capable of surpassing its annual high. At Abbott, this confidence has so far been reflected only in the most recent estimates, while the consensus remains hesitant. The real appeal of Abbott shares, however, lies in its long-term value growth: the company is one of the US dividend aristocrats and has increased its dividend for 54 consecutive years.