Devon Energy (DVN) Stock Drops Despite Market Gains: Important Facts to Note
Devon Energy (DVN) ended the recent trading session at $47.37, demonstrating a -0.57% swing from the preceding day's closing price. This change lagged the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.16%.
The oil and gas exploration company's stock has dropped by 1.06% in the past month, falling short of the Oils-Energy sector's loss of 0.69% and the S&P 500's gain of 2.83%.
Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. On that day, Devon Energy is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 10.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.9 billion, up 12.9% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.27 per share and a revenue of $15.38 billion, signifying shifts of -7.71% and +0.79%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.09% higher. Devon Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is presently being traded at a Forward P/E ratio of 9.04. This denotes a discount relative to the industry's average Forward P/E of 9.95.
Investors should also note that DVN has a PEG ratio of 1.25 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 1.16 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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