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Is Devon Energy (DVN) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.09, while its industry has an average P/E of 8.81. Over the past 52 weeks, DVN's Forward P/E has been as high as 9.20 and as low as 6.39, with a median of 7.59.
Investors should also note that DVN holds a PEG ratio of 0.14. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's industry has an average PEG of 0.26 right now. Over the last 12 months, DVN's PEG has been as high as 0.18 and as low as 0.12, with a median of 0.15.
Finally, our model also underscores that DVN has a P/CF ratio of 4.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DVN's P/CF compares to its industry's average P/CF of 4.85. Over the past 52 weeks, DVN's P/CF has been as high as 5.99 and as low as 3.60, with a median of 4.47.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Earthstone Energy , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Earthstone Energy has a P/B ratio of 1.15 while its industry's price-to-book ratio sits at 2.62. For ESTE, this valuation metric has been as high as 1.19, as low as 0.70, with a median of 0.85 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Devon Energy and Earthstone Energy are likely undervalued currently. And when considering the strength of its earnings outlook, DVN and ESTE sticks out as one of the market's strongest value stocks.
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Is Devon Energy (DVN) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.09, while its industry has an average P/E of 8.81. Over the past 52 weeks, DVN's Forward P/E has been as high as 9.20 and as low as 6.39, with a median of 7.59.
Investors should also note that DVN holds a PEG ratio of 0.14. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's industry has an average PEG of 0.26 right now. Over the last 12 months, DVN's PEG has been as high as 0.18 and as low as 0.12, with a median of 0.15.
Finally, our model also underscores that DVN has a P/CF ratio of 4.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DVN's P/CF compares to its industry's average P/CF of 4.85. Over the past 52 weeks, DVN's P/CF has been as high as 5.99 and as low as 3.60, with a median of 4.47.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Earthstone Energy , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Earthstone Energy has a P/B ratio of 1.15 while its industry's price-to-book ratio sits at 2.62. For ESTE, this valuation metric has been as high as 1.19, as low as 0.70, with a median of 0.85 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Devon Energy and Earthstone Energy are likely undervalued currently. And when considering the strength of its earnings outlook, DVN and ESTE sticks out as one of the market's strongest value stocks.