Devon Energy (DVN) Beats Stock Market Upswing: What Investors Need to Know

Devon Energy (DVN) closed the most recent trading day at $47.42, moving +1.65% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.25%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.47%.

The oil and gas exploration company's shares have seen an increase of 4.46% over the last month, not keeping up with the Oils-Energy sector's gain of 7.67% and outstripping the S&P 500's loss of 1.88%.

Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. In that report, analysts expect Devon Energy to post earnings of $0.81 per share. This would mark a year-over-year decline of 33.06%. Alongside, our most recent consensus estimate is anticipating revenue of $3.85 billion, indicating a 13.57% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.18 per share and revenue of $15.61 billion, indicating changes of -18.88% and -9.2%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.15% lower within the past month. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 14.65 right now. This signifies a discount in comparison to the average Forward P/E of 16.22 for its industry.

It is also worth noting that DVN currently has a PEG ratio of 4.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 0.72.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DVN in the coming trading sessions, be sure to utilize Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Devon Energy Corporation (DVN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research