Devon Energy (DVN) closed at $48.99, indicating a slight decline of -1.03% from the previous day’s trading session. This change was lower than the S&P 500’s 0.22% loss, as well as the losses seen in the Dow (-0.31%) and the Nasdaq (-0.23%). While Devon Energy had experienced a 1.34% decline in the past month, the Oils-Energy sector had gained 4.72% and the S&P 500 had gained 2.08% in the same period.
As Devon Energy prepares for its upcoming earnings report, analysts are expecting a decrease in its EPS by 33.49% compared to the prior-year quarter, with a projected revenue decrease of 26.83%. For the full year, analysts estimate earnings of $5.61 per share and revenue of $15.29 billion, signifying changes of -32.49% and -20.25% respectively, from the previous year.
Investors should also take note of any recent changes to analyst estimates for Devon Energy, as these revisions often reflect short-term business trends. Positive estimate revisions can be seen as a sign of optimism about the company’s future prospects.
Based on research, the Zacks Rank system provides an actionable rating system that takes estimate changes into account. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance. Stocks given a #1 ranking have returned an average of +25% annually since 1988. Currently, Devon Energy holds a Zacks Rank #3 (Hold).
Looking at valuation, Devon Energy has a lower Forward P/E ratio of 8.83 compared to the industry average of 9.67. This suggests that Devon Energy may be trading at a discount relative to its peers. Additionally, its PEG ratio of 0.17 indicates that the stock has strong expected earnings growth relative to its price. The industry’s average PEG ratio is 0.48.
The Oil and Gas – Exploration and Production – United States industry, to which Devon Energy belongs, is part of the Oils-Energy sector. This industry is currently ranked 187 out of over 250 industries in terms of Zacks Industry Rank, placing it in the bottom 26%. However, research has shown that industries in the top 50% of rankings tend to outperform those in the bottom half by a factor of 2 to 1.
For more information on these metrics and additional research, visit Zacks.com.
Sources: Zacks Investment Research
Definitions:
– EPS: Earnings Per Share; the portion of a company’s profit allocated to each outstanding share of common stock.
– Revenue: the total amount of money generated by a company’s business activities.
– Valuation: the process of determining the economic value of an asset or company.
– Forward P/E ratio: a measure of valuation which divides the current market price of a stock by its estimated future earnings per share.
– PEG ratio: the price/earnings to growth ratio, which takes into account the expected earnings growth rate of a company.
Sources: Zacks Investment Research