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

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In the latest trading session, Devon Energy (DVN - Free Report) closed at $49.22, marking a -1.52% move from the previous day. This change lagged the S&P 500's 1.68% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the oil and gas exploration company had lost 21.37% in the past month. In that same time, the Oils-Energy sector lost 8.65%, while the S&P 500 lost 6.68%.

Devon Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Devon Energy to post earnings of $1.57 per share. This would mark a year-over-year decline of 16.49%. Our most recent consensus estimate is calling for quarterly revenue of $4.22 billion, up 10.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.04 per share and revenue of $17.82 billion, which would represent changes of -15.28% and -7.03%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 10.15% lower. Devon Energy is currently a Zacks Rank #3 (Hold).

Digging into valuation, Devon Energy currently has a Forward P/E ratio of 7.1. This represents a premium compared to its industry's average Forward P/E of 5.66.

Investors should also note that DVN has a PEG ratio of 0.14 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.29 based on yesterday's closing prices.

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 226, putting it in the bottom 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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