Devon Energy (DVN) Ascends While Market Falls: Some Facts to Note

Devon Energy (DVN) ended the recent trading session at $51.35, demonstrating a +1.86% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.74%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.

Prior to today's trading, shares of the oil and gas exploration company had gained 18.28% outpaced the Oils-Energy sector's gain of 10.19% and the S&P 500's loss of 4.99%.

The investment community will be closely monitoring the performance of Devon Energy in its forthcoming earnings report. The company is predicted to post an EPS of $0.81, indicating a 33.06% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.85 billion, down 13.57% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.62 per share and revenue of $16.1 billion, indicating changes of -7.65% and -6.34%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 12.72% higher within the past month. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 13.92. This signifies a discount in comparison to the average Forward P/E of 14.79 for its industry.

We can additionally observe that DVN currently boasts a PEG ratio of 1.24. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 1.28 as of yesterday's close.

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 98, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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