Devon Energy Corporation’s (DVN - Free Report) earnings estimates have been revised upward in the past seven days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings per share moved up 9% and 8.9% to $1.57 and $2.08, respectively.
The company primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States and Canada.
Let’s focus on the factors that make Devon Energy a profitable pick for greater returns.
Zacks Rank & VGM Score
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Shares of Devon Energy have returned 4% in the past 12 months, against the industry’s decline of 17.1%.
Debt/Capital & Current Ratio
The company’s current debt-to-capital ratio of 38.64% is lower than the S&P 500’s 41.54%. The current ratio of DevonEnergy is 1.99, higher than the S&P 500’s 1.29.
Strong Diversified Portfolio
The company’s diversified portfolio and focus on high-margin assets hold significant long-term growth potential. In 2019, the company plans to invest in the range of $2-$2.25 billion in E&P activities. Courtesy of the ongoing investments in the higher-margin U.S. oil producing regions like STACK and Delaware Basin, it expects 2019 oil production to improve in the range of 13-18% from the 2018 levels.
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Consol Energy Inc (CEIX - Free Report) , SunCoke Energy, Inc. (SXC - Free Report) and Enphase Energy, Inc (ENPH - Free Report) . Consol Energy sports a Zacks Rank of 1, while both SunCoke Energy and Enphase Energy hold a Zacks Rank of 2.
Consol Energy pulled off an average positive earnings surprise of 53.86% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings per share moved up 6.33% in the past 60 days to $3.86 per share.
SunCoke Energy delivered an average earnings surprise of 285.83% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings per share moved up 59% in the past 60 days to 70 cents.
Enphase Energy came up with an average earnings surprise of 33.34% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings per share moved up 36.66% in the past 60 days to 41 cents.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>