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Are Investors Undervaluing Devon Energy (DVN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.64, which compares to its industry's average of 9.20. Over the past year, DVN's Forward P/E has been as high as 10.82 and as low as 6.27, with a median of 7.78.
Another notable valuation metric for DVN is its P/B ratio of 1.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.08. Over the past year, DVN's P/B has been as high as 2.79 and as low as 1.38, with a median of 2.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVN has a P/S ratio of 1.4. This compares to its industry's average P/S of 1.94.
Finally, our model also underscores that DVN has a P/CF ratio of 3.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.34. Over the past year, DVN's P/CF has been as high as 5.74 and as low as 3, with a median of 4.21.
These are only a few of the key metrics included in Devon Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DVN looks like an impressive value stock at the moment.
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Are Investors Undervaluing Devon Energy (DVN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.64, which compares to its industry's average of 9.20. Over the past year, DVN's Forward P/E has been as high as 10.82 and as low as 6.27, with a median of 7.78.
Another notable valuation metric for DVN is its P/B ratio of 1.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.08. Over the past year, DVN's P/B has been as high as 2.79 and as low as 1.38, with a median of 2.04.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVN has a P/S ratio of 1.4. This compares to its industry's average P/S of 1.94.
Finally, our model also underscores that DVN has a P/CF ratio of 3.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.34. Over the past year, DVN's P/CF has been as high as 5.74 and as low as 3, with a median of 4.21.
These are only a few of the key metrics included in Devon Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DVN looks like an impressive value stock at the moment.