In the latest close session, Devon Energy (DVN) was down 3.96% at $34.47. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Shares of the oil and gas exploration company witnessed a loss of 4.04% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 1.8%, and the S&P 500's gain of 1.19%.
Market participants will be closely following the financial results of Devon Energy in its upcoming release. On that day, Devon Energy is projected to report earnings of $0.95 per share, which would represent a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $4.27 billion, down 2.93% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.04 per share and revenue of $17.34 billion, indicating changes of -16.18% and 0%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.8% lower. Currently, Devon Energy is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Devon Energy is at present trading with a Forward P/E ratio of 9.65. This represents a discount compared to its industry average Forward P/E of 10.41.
Also, we should mention that DVN has a PEG ratio of 2.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 2.94 at yesterday's closing price.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 28% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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