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Is Devon Energy (DVN) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Devon Energy (DVN - Free Report) is a stock many investors are watching right now. DVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.61, which compares to its industry's average of 12.92. DVN's Forward P/E has been as high as 25.28 and as low as 9.53, with a median of 16.91, all within the past year.
Investors will also notice that DVN has a PEG ratio of 0.64. 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. DVN's industry has an average PEG of 0.77 right now. Over the past 52 weeks, DVN's PEG has been as high as 3.61 and as low as 0.64, with a median of 1.46.
We should also highlight that DVN has a P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.86. DVN's P/B has been as high as 2.14 and as low as 1.10, with a median of 1.61, over the past year.
Finally, we should also recognize that DVN has a P/CF ratio of 2.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DVN's P/CF compares to its industry's average P/CF of 5.25. Within the past 12 months, DVN's P/CF has been as high as 12.28 and as low as 2.18, with a median of 3.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Devon Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DVN feels like a great value stock at the moment.
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Is Devon Energy (DVN) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Devon Energy (DVN - Free Report) is a stock many investors are watching right now. DVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.61, which compares to its industry's average of 12.92. DVN's Forward P/E has been as high as 25.28 and as low as 9.53, with a median of 16.91, all within the past year.
Investors will also notice that DVN has a PEG ratio of 0.64. 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. DVN's industry has an average PEG of 0.77 right now. Over the past 52 weeks, DVN's PEG has been as high as 3.61 and as low as 0.64, with a median of 1.46.
We should also highlight that DVN has a P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.86. DVN's P/B has been as high as 2.14 and as low as 1.10, with a median of 1.61, over the past year.
Finally, we should also recognize that DVN has a P/CF ratio of 2.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DVN's P/CF compares to its industry's average P/CF of 5.25. Within the past 12 months, DVN's P/CF has been as high as 12.28 and as low as 2.18, with a median of 3.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Devon Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DVN feels like a great value stock at the moment.