Devon Energy (DVN) ended the recent trading session at $34.04, demonstrating a -1.93% change from the preceding day's closing price. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.13%.
Shares of the oil and gas exploration company witnessed a gain of 7.9% over the previous month, beating the performance of the Oils-Energy sector with its gain of 5.57%, and the S&P 500's gain of 0.6%.
The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. In that report, analysts expect Devon Energy to post earnings of $0.83 per share. This would mark a year-over-year decline of 41.13%. In the meantime, our current consensus estimate forecasts the revenue to be $4.02 billion, indicating a 2.66% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.92 per share and revenue of $16.68 billion. These totals would mark changes of -18.67% and +4.67%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Devon Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% lower. Devon Energy is currently a Zacks Rank #3 (Hold).
Looking at valuation, Devon Energy is presently trading at a Forward P/E ratio of 8.85. This denotes a discount relative to the industry average Forward P/E of 12.04.
It's also important to note that DVN currently trades at a PEG ratio of 2.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DVN's industry had an average PEG ratio of 2.59 as of yesterday's close.
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 182, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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