In the latest trading session, Devon Energy (DVN) closed at $35.01, marking a -1.13% move from the previous day. This change lagged the S&P 500's daily gain of 0.48%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.94%.
The oil and gas exploration company's shares have seen an increase of 4.83% over the last month, surpassing the Oils-Energy sector's gain of 3.84% and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Devon Energy in its forthcoming earnings report. The company is forecasted to report an EPS of $0.95, showcasing a 13.64% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $4.17 billion, up 3.7% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.05 per share and revenue of $17.1 billion, indicating changes of -15.98% and +7.29%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Devon Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.43% downward. Currently, Devon Energy is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Devon Energy currently has a Forward P/E ratio of 8.75. This valuation marks a discount compared to its industry average Forward P/E of 10.82.
It's also important to note that DVN currently trades at a PEG ratio of 2.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.79 at the close of the market yesterday.
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 174, which puts it in the bottom 30% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Devon Energy Corporation (DVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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