Devon Energy (DVN) closed at $37.92 in the latest trading session, marking a +2.93% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1%.
The stock of oil and gas exploration company has risen by 4.99% in the past month, leading the Oils-Energy sector's gain of 1.82% and the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Devon Energy in its upcoming release. The company plans to announce its earnings on February 17, 2026. It is anticipated that the company will report an EPS of $0.94, marking a 18.97% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.27 billion, down 2.94% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.04 per share and a revenue of $17.34 billion, indicating changes of -16.18% and 0%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 3.54% decrease. Devon Energy presently features a Zacks Rank of #4 (Sell).
Investors should also note Devon Energy's current valuation metrics, including its Forward P/E ratio of 10.23. This expresses a discount compared to the average Forward P/E of 11.09 of its industry.
Also, we should mention that DVN has a PEG ratio of 3.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 3.12.
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 210, positioning it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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