Devon Energy (DVN) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Devon Energy (DVN) standing at $42.24, reflecting a +1.56% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.3%.
The oil and gas exploration company's shares have seen a decrease of 2.76% over the last month, not keeping up with the Oils-Energy sector's gain of 1.15% and the S&P 500's gain of 5.78%.
The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. The company is slated to reveal its earnings on February 27, 2024. On that day, Devon Energy is projected to report earnings of $1.39 per share, which would represent a year-over-year decline of 16.27%. Our most recent consensus estimate is calling for quarterly revenue of $3.87 billion, down 9.98% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.14% decrease. Devon Energy is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 7.78. This represents a discount compared to its industry's average Forward P/E of 8.28.
Investors should also note that DVN has a PEG ratio of 0.15 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 0.66 as trading concluded yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 247, placing it within the bottom 2% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
