In the latest close session, Devon Energy (DVN) was down 1.36% at $49.24. This change lagged the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
Coming into today, shares of the oil and gas exploration company had gained 3.06% in the past month. In that same time, the Oils-Energy sector gained 5.67%, while the S&P 500 gained 1.41%.
Analysts and investors alike will be keeping a close eye on the performance of Devon Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. The company is expected to report EPS of $1.22, up 17.31% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $7.3 billion, indicating a 68.53% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.4 per share and revenue of $25.96 billion. These totals would mark changes of +37.76% and +51.03%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 2.33% higher. As of now, Devon Energy holds a Zacks Rank of #3 (Hold).
With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 9.25. For comparison, its industry has an average Forward P/E of 9.49, which means Devon Energy is trading at a discount to the group.
We can additionally observe that DVN currently boasts a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.85 as of yesterday's close.
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 59, which puts it in the top 24% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).