We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Devon Energy (DVN) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Devon Energy (DVN - Free Report) is a stock many investors are watching right now. DVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.78, which compares to its industry's average of 8.32. Over the past 52 weeks, DVN's Forward P/E has been as high as 9.20 and as low as 6.39, with a median of 7.58.
DVN is also sporting a PEG ratio of 0.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's PEG compares to its industry's average PEG of 0.25. DVN's PEG has been as high as 0.18 and as low as 0.12, with a median of 0.15, all within the past year.
Finally, investors will want to recognize that DVN has a P/CF ratio of 4.11. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.64. DVN's P/CF has been as high as 5.99 and as low as 3.60, with a median of 4.39, all within the past year.
W&T Offshore (WTI - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. WTI is a # 2 (Buy) stock with a Value grade of A.
Furthermore, W&T Offshore holds a P/B ratio of 24.17 and its industry's price-to-book ratio is 2.52. WTI's P/B has been as high as 121.90, as low as -23.39, with a median of 23.69 over the past 12 months.
These are only a few of the key metrics included in Devon Energy and W&T Offshore strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DVN and WTI look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Devon Energy (DVN) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Devon Energy (DVN - Free Report) is a stock many investors are watching right now. DVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.78, which compares to its industry's average of 8.32. Over the past 52 weeks, DVN's Forward P/E has been as high as 9.20 and as low as 6.39, with a median of 7.58.
DVN is also sporting a PEG ratio of 0.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DVN's PEG compares to its industry's average PEG of 0.25. DVN's PEG has been as high as 0.18 and as low as 0.12, with a median of 0.15, all within the past year.
Finally, investors will want to recognize that DVN has a P/CF ratio of 4.11. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.64. DVN's P/CF has been as high as 5.99 and as low as 3.60, with a median of 4.39, all within the past year.
W&T Offshore (WTI - Free Report) may be another strong Oil and Gas - Exploration and Production - United States stock to add to your shortlist. WTI is a # 2 (Buy) stock with a Value grade of A.
Furthermore, W&T Offshore holds a P/B ratio of 24.17 and its industry's price-to-book ratio is 2.52. WTI's P/B has been as high as 121.90, as low as -23.39, with a median of 23.69 over the past 12 months.
These are only a few of the key metrics included in Devon Energy and W&T Offshore strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DVN and WTI look like an impressive value stock at the moment.