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Why the Market Dipped But Devon Energy (DVN) Gained Today

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Devon Energy (DVN - Free Report) closed the most recent trading day at $34.47, moving +2.99% from the previous trading session. This change outpaced the S&P 500's 0.27% loss on the day.

The oil and gas exploration company's stock has dropped by 2.39% in the past month, falling short of the Oils-Energy sector's gain of 4.61% and the S&P 500's gain of 6.9%.

The investment community will be paying close attention to the earnings performance of Devon Energy in its upcoming release. It is anticipated that the company will report an EPS of $0.84, marking a 40.43% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.02 billion, reflecting a 2.66% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.94 per share and revenue of $16.68 billion. These totals would mark changes of -18.26% and +4.67%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Devon Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.09% decrease. As of now, Devon Energy holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 8.5. This represents a discount compared to its industry average Forward P/E of 10.86.

We can also see that DVN currently has a PEG ratio of 2.48. 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. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 2.48.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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