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Devon Energy (DVN) Dips More Than Broader Markets: What You Should Know

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Devon Energy (DVN - Free Report) closed at $28.07 in the latest trading session, marking a -1.34% move from the prior day. This move lagged the S&P 500's daily loss of 0.77%.

Heading into today, shares of the oil and gas exploration company had lost 0.07% over the past month, lagging the Oils-Energy sector's gain of 0.11% and the S&P 500's gain of 1.55% in that time.

Wall Street will be looking for positivity from DVN as it approaches its next earnings report date. In that report, analysts expect DVN to post earnings of $0.86 per share. This would mark year-over-year growth of 2250%. Our most recent consensus estimate is calling for quarterly revenue of $3.05 billion, up 186.14% from the year-ago period.

DVN's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $10.48 billion. These results would represent year-over-year changes of +3188.89% and +117.11%, respectively.

Any recent changes to analyst estimates for DVN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.77% higher within the past month. DVN is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, DVN is currently trading at a Forward P/E ratio of 10.24. Its industry sports an average Forward P/E of 8.92, so we one might conclude that DVN is trading at a premium comparatively.

Meanwhile, DVN's PEG ratio is currently 0.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.5 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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