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Devon Energy (DVN) Outpaces Stock Market Gains: What You Should Know

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Devon Energy (DVN - Free Report) closed the most recent trading day at $40.66, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.48%.

Heading into today, shares of the oil and gas exploration company had gained 22.21% over the past month, outpacing the Oils-Energy sector's gain of 13.33% and the S&P 500's gain of 3.46% in that time.

Wall Street will be looking for positivity from DVN as it approaches its next earnings report date. This is expected to be November 2, 2021. On that day, DVN is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 2400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.18 billion, up 197.82% from the year-ago period.

DVN's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $11.09 billion. These results would represent year-over-year changes of +3400% and +129.69%, respectively.

Investors should also note any recent changes to analyst estimates for DVN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 8.01% higher. DVN currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DVN is currently trading at a Forward P/E ratio of 13.6. This represents a premium compared to its industry's average Forward P/E of 10.84.

Also, we should mention that DVN has a PEG ratio of 0.41. 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 had an average PEG ratio of 0.49 as of yesterday's close.

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 3, putting it in the top 2% 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.

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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