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

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In the latest trading session, Devon Energy (DVN - Free Report) closed at $51.09, marking a +1.05% move from the previous day. This change outpaced the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.

Coming into today, shares of the oil and gas exploration company had gained 0.34% in the past month. In that same time, the Oils-Energy sector gained 1%, while the S&P 500 gained 3.34%.

Wall Street will be looking for positivity from Devon Energy as it approaches its next earnings report date. This is expected to be August 1, 2023. The company is expected to report EPS of $1.38, down 46.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.99 billion, down 29.07% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.14 per share and revenue of $16.11 billion, which would represent changes of -26.11% and -15.97%, respectively, from the prior year.

Investors might also notice 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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.96% lower. Devon Energy is currently a Zacks Rank #3 (Hold).

Digging into valuation, Devon Energy currently has a Forward P/E ratio of 8.24. For comparison, its industry has an average Forward P/E of 7.9, which means Devon Energy is trading at a premium to the group.

Meanwhile, DVN's PEG ratio is currently 0.16. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.4 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 225, which puts 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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