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

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Devon Energy (DVN - Free Report) closed at $53.77 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.08%.

Heading into today, shares of the oil and gas exploration company had lost 25.84% over the past month, lagging the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. This is expected to be August 1, 2022. On that day, Devon Energy is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 281.67%. Meanwhile, our latest consensus estimate is calling for revenue of $4.67 billion, up 93.1% from the prior-year quarter.

DVN's full-year Zacks Consensus Estimates are calling for earnings of $9.10 per share and revenue of $18.46 billion. These results would represent year-over-year changes of +157.79% and +54.87%, respectively.

Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.84% higher. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Devon Energy currently has a Forward P/E ratio of 6.01. For comparison, its industry has an average Forward P/E of 4.23, which means Devon Energy is trading at a premium to the group.

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 48, putting it in the top 19% 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.

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