In the latest trading session, Devon Energy (DVN) closed at $32.50, marking a -5.39% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 2.71%. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
The oil and gas exploration company's shares have seen a decrease of 2.66% over the last month, not keeping up with the Oils-Energy sector's gain of 2.1% and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. The company is slated to reveal its earnings on November 5, 2025. The company is predicted to post an EPS of $0.95, indicating a 13.64% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.17 billion, indicating a 3.7% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.03 per share and revenue of $17.1 billion, indicating changes of -16.39% and +7.29%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 1.13% lower. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 8.52. For comparison, its industry has an average Forward P/E of 11.24, which means Devon Energy is trading at a discount to the group.
We can also see that DVN currently has a PEG ratio of 2. 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. The Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 0.8 as trading concluded yesterday.
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 225, placing it within the bottom 9% of over 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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