Devon Energy (DVN) Stock Sinks As Market Gains: What You Should Know
Devon Energy (DVN) closed the most recent trading day at $55.30, moving -0.72% from the previous trading session. This change lagged the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the oil and gas exploration company had gained 20.69% over the past month. This has outpaced the Oils-Energy sector's gain of 6.24% and the S&P 500's gain of 5.67% in that time.
Investors will be hoping for strength from Devon Energy as it approaches its next earnings release, which is expected to be May 8, 2023. In that report, analysts expect Devon Energy to post earnings of $1.46 per share. This would mark a year-over-year decline of 22.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 4.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.56 per share and revenue of $16.66 billion. These totals would mark changes of -21.06% and -13.09%, respectively, from last year.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.14% lower. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Devon Energy currently has a Forward P/E ratio of 8.49. This valuation marks a premium compared to its industry's average Forward P/E of 6.74.
Also, we should mention that DVN has a PEG ratio of 0.17. 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. DVN's industry had an average PEG ratio of 0.36 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
