Is Devon Energy (DVN) Stock Outpacing Its Oils-Energy Peers This Year?
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Devon Energy (DVN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Devon Energy is a member of the Oils-Energy sector. This group includes 257 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Devon Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DVN's full-year earnings has moved 39% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DVN has returned 44.7% so far this year. In comparison, Oils-Energy companies have returned an average of 30.9%. This means that Devon Energy is outperforming the sector as a whole this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is DCP Midstream Partners, LP (DCP). The stock has returned 32.6% year-to-date.
In DCP Midstream Partners, LP's case, the consensus EPS estimate for the current year increased 17.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Devon Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 41 individual companies and currently sits at #17 in the Zacks Industry Rank. Stocks in this group have gained about 45.8% so far this year, so DVN is slightly underperforming its industry this group in terms of year-to-date returns.
DCP Midstream Partners, LP, however, belongs to the Oil and Gas - Production and Pipelines industry. Currently, this 12-stock industry is ranked #20. The industry has moved +24.1% so far this year.
Devon Energy and DCP Midstream Partners, LP could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks.
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
Devon Energy Corporation (DVN) : Free Stock Analysis Report
DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
