In the latest close session, Devon Energy (DVN) was down 1.08% at $42.12. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.91%.
The oil and gas exploration company's stock has dropped by 12.13% in the past month, falling short of the Oils-Energy sector's loss of 7.57% and the S&P 500's gain of 0.29%.
The upcoming earnings release of Devon Energy will be of great interest to investors. In that report, analysts expect Devon Energy to post earnings of $1.29 per share. This would mark year-over-year growth of 53.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, up 49.16% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.97 per share and revenue of $24.72 billion, indicating changes of +26.79% and +43.84%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 11.09% fall in the Zacks Consensus EPS estimate. Right now, Devon Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Devon Energy is currently trading at a Forward P/E ratio of 8.57. This denotes a discount relative to the industry average Forward P/E of 9.26.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 108, this industry ranks in the top 45% of all industries, numbering over 250.
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.
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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Devon Energy Corporation (DVN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).