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Is Devon Energy (DVN) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.91 right now. For comparison, its industry sports an average P/E of 13.74. Over the last 12 months, DVN's Forward P/E has been as high as 25.62 and as low as 9.53, with a median of 17.38.
Investors will also notice that DVN has a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DVN's PEG compares to its industry's average PEG of 0.86. Over the last 12 months, DVN's PEG has been as high as 3.66 and as low as 0.70, with a median of 1.52.
We should also highlight that DVN has a P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to 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 1.90. DVN's P/B has been as high as 2.14 and as low as 1.10, with a median of 1.61, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVN has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.33.
Finally, investors should note that DVN has a P/CF ratio of 2.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DVN's current P/CF looks attractive when compared to its industry's average P/CF of 5.89. Within the past 12 months, DVN's P/CF has been as high as 12.06 and as low as 2.18, with a median of 3.70.
These are just a handful of the figures considered in Devon 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 is an impressive value stock right now.
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Is Devon Energy (DVN) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Devon Energy (DVN - Free Report) . DVN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.91 right now. For comparison, its industry sports an average P/E of 13.74. Over the last 12 months, DVN's Forward P/E has been as high as 25.62 and as low as 9.53, with a median of 17.38.
Investors will also notice that DVN has a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DVN's PEG compares to its industry's average PEG of 0.86. Over the last 12 months, DVN's PEG has been as high as 3.66 and as low as 0.70, with a median of 1.52.
We should also highlight that DVN has a P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to 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 1.90. DVN's P/B has been as high as 2.14 and as low as 1.10, with a median of 1.61, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DVN has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.33.
Finally, investors should note that DVN has a P/CF ratio of 2.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DVN's current P/CF looks attractive when compared to its industry's average P/CF of 5.89. Within the past 12 months, DVN's P/CF has been as high as 12.06 and as low as 2.18, with a median of 3.70.
These are just a handful of the figures considered in Devon 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 is an impressive value stock right now.