In the latest market close, Devon Energy (DVN) reached $31.44, with a +0.9% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.47%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Coming into today, shares of the oil and gas exploration company had lost 6.03% in the past month. In that same time, the Oils-Energy sector lost 11.12%, while the S&P 500 lost 0.47%.
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 $1.27, marking a 9.48% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.36 billion, showing a 21.31% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.34 per share and a revenue of $16.81 billion, indicating changes of -9.96% and +5.43%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been an 8.47% fall in the Zacks Consensus EPS estimate. Devon Energy currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Devon Energy currently has a Forward P/E ratio of 7.18. This expresses a discount compared to the average Forward P/E of 8.56 of its industry.
One should further note that DVN currently holds a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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