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Devon Energy (DVN) Outpaces Stock Market Gains: What You Should Know

Devon Energy (DVN) closed at $60.85 in the latest trading session, marking a +0.83% move from the prior day. This move outpaced the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the oil and gas exploration company had gained 1.31% over the past month, lagging the Oils-Energy sector's gain of 8.66% and the S&P 500's gain of 5.64% in that time.

Devon Energy will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2022. In that report, analysts expect Devon Energy to post earnings of $1.57 per share. This would mark year-over-year growth of 248.89%. Meanwhile, our latest consensus estimate is calling for revenue of $3.63 billion, up 105.9% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $14.67 billion. These totals would mark changes of +88.67% and +23.06%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 7.91% higher within the past month. Devon Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 9.06 right now. This valuation marks a premium compared to its industry's average Forward P/E of 6.65.

It is also worth noting that DVN currently has a PEG ratio of 0.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.31 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 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DVN in the coming trading sessions, be sure to utilize Zacks.com.


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