Devon Energy (DVN) ended the recent trading session at $32.35, demonstrating a -1.46% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.
Shares of the oil and gas exploration company have appreciated by 5.36% over the course of the past month, underperforming the Oils-Energy sector's gain of 5.39%, and outperforming the S&P 500's gain of 3.92%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company is expected to report EPS of $0.83, down 41.13% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.02 billion, showing a 2.66% escalation compared to the year-ago quarter.
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. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. As of now, Devon Energy holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Devon Energy is currently exchanging hands at a Forward P/E ratio of 8.37. This represents a discount compared to its industry average Forward P/E of 11.54.
Meanwhile, DVN's PEG ratio is currently 2.45. 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 industry had an average PEG ratio of 2.79 as trading concluded yesterday.
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 157, placing it within the bottom 37% of over 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.
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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