In the latest trading session, Devon Energy (DVN) closed at $33.41, marking a +2.33% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.48%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.
The oil and gas exploration company's shares have seen an increase of 2% over the last month, not keeping up with the Oils-Energy sector's gain of 4.97% and the S&P 500's gain of 5.13%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2025. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $4.02 billion, reflecting a 2.66% rise from the equivalent quarter last 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Devon Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 8.32 right now. This denotes a discount relative to the industry average Forward P/E of 10.71.
Also, we should mention that DVN has a PEG ratio of 2.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 1.48 at the close of the market yesterday.
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 162, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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