Devon Energy (DVN) closed at $31.08 in the latest trading session, marking a -0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.67%. On the other hand, the Dow registered a gain of 1.07%, and the technology-centric Nasdaq increased by 2.5%.
Heading into today, shares of the oil and gas exploration company had lost 15.61% over the past month, lagging the Oils-Energy sector's loss of 10.69% and the S&P 500's loss of 6.57% in that time.
Market participants will be closely following the financial results of Devon Energy in its upcoming release. The company plans to announce its earnings on May 6, 2025. It is anticipated that the company will report an EPS of $1.25, marking a 7.76% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 21.26% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.54 per share and revenue of $17.01 billion, which would represent changes of -5.81% and +6.72%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.25% 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 6.87. This indicates a discount in contrast to its industry's Forward P/E of 7.67.
It's also important to note that DVN currently trades at a PEG ratio of 0.62. 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. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 0.92.
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 192, finds itself in the bottom 23% echelons 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.
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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