Devon Energy (DVN) closed at $46.95 in the latest trading session, marking a -1.18% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Heading into today, shares of the oil and gas exploration company had lost 6.05% over the past month, lagging the Oils-Energy sector's gain of 4.06% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. This is expected to be November 7, 2023. On that day, Devon Energy is projected to report earnings of $1.45 per share, which would represent a year-over-year decline of 33.49%. Meanwhile, our latest consensus estimate is calling for revenue of $3.98 billion, down 26.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.60 per share and revenue of $15.3 billion. These totals would mark changes of -32.61% and -20.19%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.9% higher. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 8.48. Its industry sports an average Forward P/E of 9.55, so we one might conclude that Devon Energy is trading at a discount comparatively.
Investors should also note that DVN has a PEG ratio of 0.17 right now. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.48 as of yesterday's close.
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 104, putting it in the top 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report