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Devon Energy (DVN) Surges 7.3%: Is This an Indication of Further Gains?

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Devon Energy (DVN - Free Report) shares rallied 7.3% in the last trading session to close at $30.33. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.1% gain over the past four weeks.

Devon Energy’s strong production from high margin assets continues to drive its performance. Devon Energy completed the divestiture of Canadian assets in 2019 and Barnett Shale gas assets in October 2020 to focus on its assets in five oil-rich U.S. basins. The company is focused to introduce advance technology to produce high oil volumes from wells.

Devon is aggressively striving to improve the cost structure. Courtesy of various cost-saving initiatives, the company lowered expenses via reducing well costs, production expense, financing costs and G&A costs.

Price and Consensus

Price Consensus Chart for DVN

This oil and gas exploration company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of +2250%. Revenues are expected to be $3.05 billion, up 186.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Devon Energy, the consensus EPS estimate for the quarter has been revised 4.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DVN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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