Why Devon Energy (DVN) Outpaced the Stock Market Today
Devon Energy (DVN) closed at $45.94 in the latest trading session, marking a +0.68% move from the prior day. This change outpaced the S&P 500's 0.18% gain on the day. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
Heading into today, shares of the oil and gas exploration company had gained 4.99% over the past month, outpacing the Oils-Energy sector's gain of 1.79% and the S&P 500's gain of 2.75% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Devon Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.52, indicating an 8.43% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.95 billion, down 8.02% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 3.7% lower. Devon Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, Devon Energy is presently being traded at a Forward P/E ratio of 7.16. This indicates a premium in contrast to its industry's Forward P/E of 7.11.
We can additionally observe that DVN currently boasts a PEG ratio of 0.14. 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. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 0.4.
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 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
