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Devon Energy (DVN) Stock Sinks As Market Gains: What You Should Know
Devon Energy (DVN - Free Report) closed the most recent trading day at $54.50, moving -0.96% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Heading into today, shares of the oil and gas exploration company had lost 11.54% over the past month, lagging the Oils-Energy sector's loss of 1.39% and the S&P 500's loss of 4.07% in that time.
Devon Energy will be looking to display strength as it nears its next earnings release. On that day, Devon Energy is projected to report earnings of $1.66 per share, which would represent a year-over-year decline of 11.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.22 billion, up 10.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.25 per share and revenue of $17.82 billion. These totals would mark changes of -12.76% and -7.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Devon Energy. Recent revisions tend to reflect the latest 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. 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.
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 7.47% lower. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 7.59. This represents a premium compared to its industry's average Forward P/E of 6.01.
It is also worth noting that DVN currently has a PEG ratio of 0.15. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.3 at yesterday's closing price.
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 231, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.