Devon Energy (DVN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Devon Energy (DVN) closed at $28.54, marking a -0.21% move from the previous day. This change lagged the S&P 500's daily gain of 0.51%.
Prior to today's trading, shares of the oil and gas exploration company had gained 10.21% over the past month. This has outpaced the Oils-Energy sector's gain of 3.75% and the S&P 500's gain of 1.75% in that time.
Investors will be hoping for strength from DVN as it approaches its next earnings release. The company is expected to report EPS of $0.47, up 361.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, up 483.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $9.05 billion. These totals would mark changes of +2566.67% and +87.51%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DVN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 3.26% higher within the past month. DVN is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, DVN is currently trading at a Forward P/E ratio of 12.91. This valuation marks a premium compared to its industry's average Forward P/E of 10.86.
Meanwhile, DVN's PEG ratio is currently 0.7. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.7 at yesterday's closing price.
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 97, which puts it in the top 39% 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.
To follow DVN in the coming trading sessions, be sure to utilize Zacks.com.
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