Devon Energy (DVN) closed at $35.67 in the latest trading session, marking a -1.46% move from the prior day. This change lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq lost 0.09%.
The oil and gas exploration company's stock has dropped by 0.55% in the past month, falling short of the Oils-Energy sector's gain of 0.61% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 18.1% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.27 billion, indicating a 2.93% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.02 per share and a revenue of $17.34 billion, representing changes of -16.6% and +8.79%, respectively, from the prior year.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.67% increase. As of now, Devon Energy holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 9.01 right now. This represents a discount compared to its industry average Forward P/E of 10.37.
It's also important to note that DVN currently trades at a PEG ratio of 2.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 2.75 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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