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

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Devon Energy (DVN - Free Report) closed the most recent trading day at $54.14, moving +1.33% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.15%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.32%.

Prior to today's trading, shares of the oil and gas exploration company had gained 14.48% over the past month. This has outpaced the Oils-Energy sector's gain of 8.57% and the S&P 500's gain of 1.65% in that time.

Market participants will be closely following the financial results of Devon Energy in its upcoming release. The company plans to announce its earnings on May 1, 2024. In that report, analysts expect Devon Energy to post earnings of $1.09 per share. This would mark a year-over-year decline of 25.34%. Our most recent consensus estimate is calling for quarterly revenue of $3.58 billion, down 6.41% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.87 per share and a revenue of $14.88 billion, representing changes of -14.71% and -2.45%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Devon Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.67% lower. As of now, Devon Energy holds a Zacks Rank of #3 (Hold).

In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 10.97. This valuation marks a discount compared to its industry's average Forward P/E of 11.25.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 25% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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