Devon Energy (DVN) Dips More Than Broader Markets: What You Should Know
Devon Energy (DVN) closed at $21.88 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day.
Prior to today's trading, shares of the oil and gas exploration company had lost 10.55% over the past month. This has lagged the Oils-Energy sector's loss of 3.65% and the S&P 500's gain of 6.61% in that time.
Investors will be hoping for strength from DVN as it approaches its next earnings release, which is expected to be May 4, 2021. In that report, analysts expect DVN to post earnings of $0.36 per share. This would mark year-over-year growth of 176.92%. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 3.97% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.96 per share and revenue of $9.29 billion, which would represent changes of +2277.78% and +92.48%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DVN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 43.12% higher. DVN currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note DVN's current valuation metrics, including its Forward P/E ratio of 11.25. This valuation marks a premium compared to its industry's average Forward P/E of 10.19.
Also, we should mention that DVN has a PEG ratio of 6.18. 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 0.91 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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