Here's Why Devon Energy (DVN) Fell More Than Broader Market
In the latest market close, Devon Energy (DVN) reached $41.09, with a -1.42% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
The oil and gas exploration company's stock has dropped by 8.76% in the past month, falling short of the Oils-Energy sector's loss of 2.83% and the S&P 500's gain of 1.2%.
The investment community will be closely monitoring the performance of Devon Energy in its forthcoming earnings report. On that day, Devon Energy is projected to report earnings of $1.40 per share, which would represent a year-over-year decline of 15.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.88 billion, down 9.77% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Devon Energy. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 11.97% decrease. Devon Energy is holding a Zacks Rank of #5 (Strong Sell) right now.
In the context of valuation, Devon Energy is at present trading with a Forward P/E ratio of 7.21. This expresses a discount compared to the average Forward P/E of 7.39 of its industry.
Investors should also note that DVN has a PEG ratio of 0.14 right now. 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 0.59 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 251, placing it within the bottom 1% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Devon Energy Corporation (DVN) : Free Stock Analysis Report
