The latest trading session saw Devon Energy (DVN) ending at $43.59, denoting a -0.8% adjustment from its last day's close. This change lagged the S&P 500's 0.07% loss on the day.
The oil and gas exploration company's shares have seen a decrease of 0.63% over the last month, not keeping up with the Oils-Energy sector's gain of 0.36% and the S&P 500's gain of 3.98%.
Market participants will be closely following the financial results of Devon Energy in its upcoming release. The company is forecasted to report an EPS of $1.45, showcasing a 12.65% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.94 billion, down 8.37% from the year-ago period.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 9.42% fall in the Zacks Consensus EPS estimate. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 7.39. This signifies a discount in comparison to the average Forward P/E of 7.6 for its industry.
We can additionally observe that DVN currently boasts a PEG ratio of 0.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.6 at yesterday's closing price.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 248, positioning it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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