Devon Energy(DVN) ZACKS·2025-01-15 00:01Core Viewpoint - Devon Energy's stock has shown resilience, outperforming both the S&P 500 and the Oils-Energy sector over the past month, despite anticipated declines in earnings for the upcoming quarter [1][2]. Company Performance - Devon Energy closed at 1 per share, indicating a year-over-year decline of 29.08% [2]. - The consensus estimate for quarterly revenue is $4.26 billion, which represents a 2.7% increase from the same period last year [2]. Analyst Estimates and Ratings - Recent changes to analyst estimates for Devon Energy are crucial as they reflect the evolving business trends, with positive revisions indicating confidence in the company's performance [3]. - The Zacks Rank system, which assesses estimate changes, currently ranks Devon Energy as 3 (Hold), with a consensus EPS projection that has moved 3.53% lower in the past 30 days [4][5]. Valuation Metrics - Devon Energy is trading at a Forward P/E ratio of 7.83, which is below the industry average of 10.03, suggesting it is undervalued compared to its peers [6]. - The company has a PEG ratio of 1.19, slightly below the industry average PEG ratio of 1.23, indicating a favorable valuation in relation to its projected earnings growth [7]. Industry Context - The Oil and Gas - Exploration and Production - United States industry, which includes Devon Energy, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [8]. - Historically, industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [8].