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Should Value Investors Buy Devon Energy (DVN) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.15 right now. For comparison, its industry sports an average P/E of 11.28. Over the past 52 weeks, DVN's Forward P/E has been as high as 8.86 and as low as 5.57, with a median of 7.66.
We should also highlight that DVN has a P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.47. DVN's P/B has been as high as 2.02 and as low as 1.16, with a median of 1.50, over the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVN has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.15.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Ring Energy (REI - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.
Ring Energy sports a P/B ratio of 0.23 as well; this compares to its industry's price-to-book ratio of 3.47. In the past 52 weeks, REI's P/B has been as high as 0.42, as low as 0.17, with a median of 0.27.
These are just a handful of the figures considered in Devon Energy and Ring Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVN and REI is an impressive value stock right now.
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Should Value Investors Buy Devon Energy (DVN) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.15 right now. For comparison, its industry sports an average P/E of 11.28. Over the past 52 weeks, DVN's Forward P/E has been as high as 8.86 and as low as 5.57, with a median of 7.66.
We should also highlight that DVN has a P/B ratio of 1.41. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.47. DVN's P/B has been as high as 2.02 and as low as 1.16, with a median of 1.50, over the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVN has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.15.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Ring Energy (REI - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.
Ring Energy sports a P/B ratio of 0.23 as well; this compares to its industry's price-to-book ratio of 3.47. In the past 52 weeks, REI's P/B has been as high as 0.42, as low as 0.17, with a median of 0.27.
These are just a handful of the figures considered in Devon Energy and Ring Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVN and REI is an impressive value stock right now.