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Why Devon Energy (DVN) Outpaced the Stock Market Today

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In the latest trading session, Devon Energy (DVN - Free Report) closed at $32.48, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw an upswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.97%.

Shares of the oil and gas exploration company witnessed a gain of 4.12% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.8%, and underperforming the S&P 500's gain of 5.12%.

The upcoming earnings release of Devon Energy will be of great interest to investors. The company's earnings report is expected on August 5, 2025. The company is expected to report EPS of $0.83, down 41.13% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.02 billion, showing a 2.66% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.92 per share and revenue of $16.68 billion, which would represent changes of -18.67% and +4.67%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Devon Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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 past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Devon Energy is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 8.19 right now. This signifies a discount in comparison to the average Forward P/E of 10.49 for its industry.

One should further note that DVN currently holds a PEG ratio of 2.39. 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. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 2.72 at the close of the market yesterday.

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 167, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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