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Devon Energy (DVN) Gains As Market Dips: What You Should Know

Devon Energy (DVN) closed at $56.17 in the latest trading session, marking a +1.79% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the oil and gas exploration company had lost 25.57% over the past month. This has lagged the Oils-Energy sector's loss of 15.96% and the S&P 500's loss of 9.7% in that time.

Investors will be hoping for strength from Devon Energy as it approaches its next earnings release, which is expected to be November 1, 2022. On that day, Devon Energy is projected to report earnings of $2.23 per share, which would represent year-over-year growth of 106.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.9 billion, up 41.36% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.24 per share and revenue of $19.85 billion. These totals would mark changes of +161.76% and +66.52%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Devon Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% higher. Devon Energy currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Devon Energy is holding a Forward P/E ratio of 5.97. Its industry sports an average Forward P/E of 4.13, so we one might conclude that Devon Energy is trading at a premium comparatively.

Meanwhile, DVN's PEG ratio is currently 0.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.19 at yesterday's closing price.

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 32, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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