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Devon Energy (DVN) Gains As Market Dips: What You Should Know

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In the latest trading session, Devon Energy (DVN - Free Report) closed at $51.79, marking a +1.03% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the oil and gas exploration company had gained 15.19% in the past month. In that same time, the Oils-Energy sector gained 10.7%, while the S&P 500 lost 7.66%.

Devon Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2022. Our most recent consensus estimate is calling for quarterly revenue of $3.69 billion, up 187.99% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.09% higher. Devon Energy is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 9.22 right now. For comparison, its industry has an average Forward P/E of 5.7, which means Devon Energy is trading at a premium to the group.

We can also see that DVN currently has a PEG ratio of 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.28 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.

To follow DVN in the coming trading sessions, be sure to utilize Zacks.com.


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