Devon Energy (DVN) closed at $47.91 in the latest trading session, marking a -4.08% move from the prior day. This change lagged the S&P 500's daily gain of 2.51%. Elsewhere, the Dow gained 2.85%, while the tech-heavy Nasdaq added 2.8%.
The oil and gas exploration company's shares have seen an increase of 14.3% over the last month, surpassing the Oils-Energy sector's gain of 7.33% and the S&P 500's loss of 1.66%.
Market participants will be closely following the financial results of Devon Energy in its upcoming release. The company is predicted to post an EPS of $1.03, indicating a 14.88% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.12 billion, down 7.43% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.29 per share and revenue of $17.11 billion, indicating changes of +9.44% and -0.43%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Devon Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 50.52% upward. Currently, Devon Energy is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Devon Energy is presently trading at a Forward P/E ratio of 11.65. This expresses a discount compared to the average Forward P/E of 12.53 of its industry.
It is also worth noting that DVN currently has a PEG ratio of 1.04. 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 had an average PEG ratio of 1.11 as trading concluded yesterday.
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 23, putting it in the top 10% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Devon Energy Corporation (DVN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).