We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Devon Energy (DVN) a Great Value Stock Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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 holds a P/E ratio of 14.31, while its industry has an average P/E of 19.64. Over the past 52 weeks, DVN's Forward P/E has been as high as 22.92 and as low as 8.91, with a median of 13.14.
Investors will also notice that DVN has a PEG ratio of 1.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's industry has an average PEG of 1.67 right now. DVN's PEG has been as high as 2.11 and as low as 0.61, with a median of 1.41, all within the past year.
Another notable valuation metric for DVN is its P/B ratio of 1.49. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past 12 months, DVN's P/B has been as high as 1.86 and as low as 1.16, with a median of 1.42.
Finally, investors will want to recognize that DVN has a P/CF ratio of 3.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DVN's P/CF compares to its industry's average P/CF of 5.44. Over the past year, DVN's P/CF has been as high as 3.44 and as low as 1.61, with a median of 2.72.
These are just a handful of the figures considered in Devon Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVN is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Devon Energy (DVN) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
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 holds a P/E ratio of 14.31, while its industry has an average P/E of 19.64. Over the past 52 weeks, DVN's Forward P/E has been as high as 22.92 and as low as 8.91, with a median of 13.14.
Investors will also notice that DVN has a PEG ratio of 1.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's industry has an average PEG of 1.67 right now. DVN's PEG has been as high as 2.11 and as low as 0.61, with a median of 1.41, all within the past year.
Another notable valuation metric for DVN is its P/B ratio of 1.49. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past 12 months, DVN's P/B has been as high as 1.86 and as low as 1.16, with a median of 1.42.
Finally, investors will want to recognize that DVN has a P/CF ratio of 3.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DVN's P/CF compares to its industry's average P/CF of 5.44. Over the past year, DVN's P/CF has been as high as 3.44 and as low as 1.61, with a median of 2.72.
These are just a handful of the figures considered in Devon Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVN is an impressive value stock right now.