In the latest trading session, Devon Energy (DVN) closed at $55.11, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the oil and gas exploration company had lost 27.01% over the past month, lagging the Oils-Energy sector's loss of 14.09% and the S&P 500's loss of 8.06% in that time.
Investors will be hoping for strength from Devon Energy as it approaches its next earnings release, which is expected to be August 1, 2022. On that day, Devon Energy is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 281.67%. Meanwhile, our latest consensus estimate is calling for revenue of $4.67 billion, up 93.1% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.10 per share and revenue of $18.46 billion, which would represent changes of +157.79% and +54.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Devon Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 3.78% higher. Devon Energy is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Devon Energy has a Forward P/E ratio of 6.14 right now. For comparison, its industry has an average Forward P/E of 4.46, which means Devon Energy is trading at a premium to the group.
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 38, putting it in the top 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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