Devon Energy (DVN) closed at $41.11 in the latest trading session, marking a +2.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.84%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
The oil and gas exploration company's stock has climbed by 9.82% in the past month, exceeding the Oils-Energy sector's gain of 7.71% and the S&P 500's gain of 1.8%.
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. The company is predicted to post an EPS of $0.86, indicating a 25.86% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.03 billion, showing a 8.58% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.94 per share and a revenue of $17.08 billion, indicating changes of -18.26% and 0%, respectively, from the former year.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 11.51% lower within the past month. Right now, Devon Energy possesses a Zacks Rank of #5 (Strong Sell).
Investors should also note Devon Energy's current valuation metrics, including its Forward P/E ratio of 12.01. Its industry sports an average Forward P/E of 12.71, so one might conclude that Devon Energy is trading at a discount comparatively.
Also, we should mention that DVN has a PEG ratio of 3.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 2.4 at yesterday's closing price.
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 234, placing it within the bottom 5% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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