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Devon Energy (DVN) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Devon Energy (DVN - Free Report) closed at $45.76, marking a -1.38% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.

The the stock of oil and gas exploration company has risen by 3.39% in the past month, leading the Oils-Energy sector's gain of 2.41% and undershooting the S&P 500's gain of 5.28%.

The upcoming earnings release of Devon Energy will be of great interest to investors. It is anticipated that the company will report an EPS of $1.52, marking an 8.43% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.95 billion, reflecting an 8.02% fall from the equivalent quarter last year.

DVN's full-year Zacks Consensus Estimates are calling for earnings of $5.81 per share and revenue of $15.1 billion. These results would represent year-over-year changes of -30.08% and -21.22%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.88% fall in the Zacks Consensus EPS estimate. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Devon Energy is presently being traded at a Forward P/E ratio of 7.98. This denotes a discount relative to the industry's average Forward P/E of 8.9.

Meanwhile, DVN's PEG ratio is currently 0.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.44 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 20% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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