In the latest trading session, Devon Energy (DVN) closed at $50.65, marking a -1.44% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Heading into today, shares of the oil and gas exploration company had gained 4.47% over the past month, outpacing the Oils-Energy sector's gain of 3.12% and the S&P 500's gain of 0.09% in that time.
Investors will be hoping for strength from Devon Energy as it approaches its next earnings release. On that day, Devon Energy is projected to report earnings of $1.45 per share, which would represent a year-over-year decline of 33.49%. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, down 26.83% from the prior-year quarter.
DVN's full-year Zacks Consensus Estimates are calling for earnings of $5.61 per share and revenue of $15.3 billion. These results would represent year-over-year changes of -32.49% and -20.19%, respectively.
It is also important to note the recent changes to analyst estimates for Devon Energy. 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.
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, 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. The Zacks Consensus EPS estimate has moved 2.43% higher within the past month. Devon Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 9.17. This valuation marks a discount compared to its industry's average Forward P/E of 9.98.
Investors should also note that DVN has a PEG ratio of 0.18 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.5 based on yesterday's closing prices.
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 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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