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Devon Energy (DVN) Gains As Market Dips: What You Should Know

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Devon Energy (DVN - Free Report) closed at $70.59 in the latest trading session, marking a +1.95% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.46%.

Coming into today, shares of the oil and gas exploration company had lost 2.47% in the past month. In that same time, the Oils-Energy sector gained 3.39%, while the S&P 500 lost 6.69%.

Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. On that day, Devon Energy is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 281.67%. Meanwhile, our latest consensus estimate is calling for revenue of $4.67 billion, up 93.1% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.08 per share and revenue of $18.46 billion. These totals would mark changes of +157.22% and +54.87%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.85% higher within the past month. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 7.63 right now. Its industry sports an average Forward P/E of 5.53, so we one might conclude that Devon Energy is trading at a premium comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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