32.53 -1.01 (-3.01%)
Pre-Market: 8:18AM EDT
|Bid||32.53 x 1000|
|Ask||33.24 x 1000|
|Day's Range||33.51 - 34.49|
|52 Week Range||20.37 - 46.54|
|Beta (3Y Monthly)||2.04|
|PE Ratio (TTM)||5.50|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||0.36 (1.14%)|
|1y Target Est||39.10|
Two major areas of interest - output growth and oil price realizations - are sending mixed signals with regard to Concho Resources' (CXO) results in the upcoming quarter.
Buoyed by strong production and cost-saving initiatives, Devon Energy (DVN) is likely to beat estimates when it reports first-quarter earnings on Apr 30.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
I am not a fan of this administration, but its recent efforts to force Iran and Venezuela out of the oil markets are having an effect: It's bringing some dead oil stocks back to life.Source: Shutterstock The big winners are domestic producers that, as in the Princess Bride, weren't all dead … just mostly dead. These are companies like Extraction Oil & Gas (NYSE:XOG) and Devon Energy (NYSE:DVN).What they have in common are steady production and balance sheets that let them put their new gains into something other than paying back old debt. If they can buy their own stock instead, it can float upward and that gives them a currency with which to do new deals.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Speculators WinThis has been a play for speculators, not investors, because if you were buying and holding these stocks over the last year or two, you're wondering what the excitement is about.Take Extraction Oil as an example. This stock is up 30% since the start of the year. Much of that gain has been achieved in just the last week, before April 23, as the price of West Texas Intermediate (WTI), the primary U.S. grade, has gone from $60 per barrel to $65. * 10 Oversold Stocks to Run From Extraction has had been profitable since last spring, but its balance sheet still shows $1.4 billion in debt, against a market cap of $946 million, when the stock opened for trade April 23. Over the last year, it is down 60%. It's only this month that it has started to pay off.Devon is in much better financial shape. It remained profitable during the worst of the oil bust, which started in 2014, reporting 2018 net income of $1.14 billion. The balance sheet shows debts of just $5.8 billion on a market cap of $15.4 billion.Yet if you have been in this name for a year, you have just broken even, and over two years, the return is a negative 10%. The dividend, currently at 9 cents per share, a yield of 1.14%, doesn't make up that loss. What you needed to do was time your trade to the start of the year. If you bought early in January, you have a gain of over 50% in Devon.This is a game for traders and speculators, not investors.What the small fry hope for is a bailout, from a major oil stocks player like Chevron (NYSE:CVX).Chevron recently announced it will buy Anadarko Petroleum (NYSE:APC) for $33 billion. Or try Conoco Philips (NYSE:COP), which has sold assets to firm up its balance sheet. It could now buy back stock or a smaller domestic producer. Analysts are pounding the table for these stocks.But what they're pushing are sellers, not buyers. Conoco Philips has been a net seller of assets. Anadarko is trading above the Chevron bid because Occidental Petroleum (NYSE:OXY) may still launch a hostile bid for the company.In any case, what analysts are praying for is consolidation. Fewer players, more concentrated in the Permian, could become "swing producers" that can hold prices steady, and increase production when the market is tight, limiting it when the market is glutted. The Bottom Line on Oil StocksIran is going to come back online. Venezuela is going to come back online. Huge new pools of oil, like the one Exxon Mobil (NYSE:XOM) has found off Guyana, are going to come online.Production will rise, and demand will fall, because there are now alternatives to oil in the market. Efficiency, technology, and renewable energy are still the market drivers. The Permian "control" of the market has a sell-by date, and you don't want to be long when it comes.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Why Dead Oil Stocks Are Rising From the Grave appeared first on InvestorPlace.
Devon Energy (DVN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Brent crude futures closed 2.9 percent higher Monday after U.S. Secretary of State Mike Pompeo said no more waivers will be issued on sanctions aimed at isolating the Islamic Republic. In response, Iran threatened to shut the Strait of Hormuz, a key maritime chokepoint for Persian Gulf producers, and said it’s engaged in “intensive” talks with partners to blunt the impact of Trump’s escalation.
Today we'll look at Devon Energy Corporation (NYSE:DVN) and reflect on its potential as an investment. In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is a...
Billionaire George Soros is one of the savviest investors in history. Through a rigorous investment approach, Soros has made himself into one of the richest men in the world. He has also donated billions to help advance his causes and to make the world a better place. Given how savvy Soros is and how the […]
Friday was a big day for many oil stock names after Chevron agreed to buy Anadarko Petroleum for $33 billion. Meanwhile another stock, Chesapeake Energy Corporation (NYSE:CHK), fell due to some Wall Street commentary. Let's take a closer look at Chesapeake, Exxon Mobil Corporation (NYSE:XOM), Devon Energy Corp (NYSE:DVN), Hess Corporation (NYSE:HES), and Concho Resources Inc. (NYSE:CXO), and see how the […]
Devon Energy (DVN) is seeing positive earnings estimate revisions, suggesting that it could be a solid choice for investors.
US Oil Supply Might Not Impact Oil Much(Continued from Prior Part)Goldman Sachs On April 8 in an interview with CNBC, Jeff Currie, the commodities head at Goldman Sachs (GS), said that oil won’t return to the high like last year. Last year, Brent
Oil prices continue to rally, but not all is well in the U.S. shale patch as drillers are facing both operational issues and have laid off hundreds of people
Devon Energy Corp. (DVN) today announced plans to announce first-quarter 2019 results on Tuesday, April 30, after the close of U.S. financial markets. The earnings release and operations report for the first-quarter 2019 results will be available on the company’s website at www.devonenergy.com. Devon Energy is a leading independent energy company engaged in finding and producing oil and natural gas.