Devon Energy (DVN) Gains As Market Dips: What You Should Know
Devon Energy (DVN) closed at $48.57 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Prior to today's trading, shares of the oil and gas exploration company had lost 11.81% over the past month. This has lagged the Oils-Energy sector's loss of 6.61% and the S&P 500's gain of 0.07% in that time.
Devon Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.55, down 17.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.15 billion, up 8.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.98 per share and revenue of $17.19 billion, which would represent changes of -16% and -10.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 6.85% lower. Devon Energy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 6.89 right now. This represents a premium compared to its industry's average Forward P/E of 5.62.
Meanwhile, DVN's PEG ratio is currently 0.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.3 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
