Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Devon Energy (DVN - Free Report) closed at $48.99, marking a -1.03% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Coming into today, shares of the oil and gas exploration company had lost 1.34% in the past month. In that same time, the Oils-Energy sector gained 4.72%, while the S&P 500 gained 2.08%.

Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. The company is expected to report EPS of $1.45, down 33.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, down 26.83% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.61 per share and revenue of $15.29 billion. These totals would mark changes of -32.49% and -20.25%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Devon Energy. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. Devon Energy is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 8.83. Its industry sports an average Forward P/E of 9.67, so we one might conclude that Devon Energy is trading at a discount comparatively.

It is also worth noting that DVN currently has a PEG ratio of 0.17. 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. DVN's industry had an average PEG ratio of 0.48 as of yesterday's close.

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 187, which puts it in the bottom 26% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Devon Energy Corporation (DVN) - free report >>

Published in