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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 $35.21, moving +2.12% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the oil and gas exploration company had lost 2.13% over the past month, lagging the Oils-Energy sector's gain of 2.23% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company is expected to report EPS of $0.96, down 12.73% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.17 billion, indicating a 3.7% growth compared to the corresponding quarter of the prior year.
DVN's full-year Zacks Consensus Estimates are calling for earnings of $4.05 per share and revenue of $17.1 billion. These results would represent year-over-year changes of -15.98% and +7.29%, respectively.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.74% fall in the Zacks Consensus EPS estimate. Currently, Devon Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 8.52. For comparison, its industry has an average Forward P/E of 10.72, which means Devon Energy is trading at a discount to the group.
It's also important to note that DVN currently trades at a PEG ratio of 2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 0.79.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why the Market Dipped But Devon Energy (DVN) Gained Today
Devon Energy (DVN - Free Report) closed the most recent trading day at $35.21, moving +2.12% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the oil and gas exploration company had lost 2.13% over the past month, lagging the Oils-Energy sector's gain of 2.23% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company is expected to report EPS of $0.96, down 12.73% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.17 billion, indicating a 3.7% growth compared to the corresponding quarter of the prior year.
DVN's full-year Zacks Consensus Estimates are calling for earnings of $4.05 per share and revenue of $17.1 billion. These results would represent year-over-year changes of -15.98% and +7.29%, respectively.
Any recent changes to analyst estimates for Devon Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.74% fall in the Zacks Consensus EPS estimate. Currently, Devon Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 8.52. For comparison, its industry has an average Forward P/E of 10.72, which means Devon Energy is trading at a discount to the group.
It's also important to note that DVN currently trades at a PEG ratio of 2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 0.79.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.