Devon Energy Corporation (DVN) is an independent energy company with a market cap of $31.12 billion. Headquartered in Oklahoma City, Oklahoma, it explores, develops, and produces oil, natural gas, and natural gas liquids (NGLs) across the U.S. The company operates in Delaware, Anadarko, Williston, Eagle Ford, and Powder River Basin.
Devon Energy has underperformed the broader market over the last year. The stock has gained 6.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. But in 2024, the gap narrowed, with DVN stock rising 8.7%, while the SPX is up 11.1% on a YTD basis.
Narrowing the focus, DVN’s gains over the past 52 weeks are easily overshadowed by the iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The exchange-traded fund has gained about 29.4% over this period. Moreover, the ETF’s 10.3% gains on a YTD basis outweigh the stock’s returns over the same time frame.
On May 1, Devon Energy reported Q1 earnings that exceeded Wall Street's EPS estimates but missed revenue estimates. The stock lost 1.5% on the day it released earnings and also saw a downtrend since then.
For the current fiscal year, ending in December 2024, analysts expect DVN’s EPS to decline by 8.8% year over year to $5.21 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering DVN stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
This configuration is slightly more bullish than three months ago, with 12 suggesting a “Strong Buy.”
On May 14, Mark Lear from Piper Sandler maintained a “Buy” rating on Devon Energy, with a price target of $61.00, which indicates a 23.9% upside from the current levels.
The mean price target of $58.23 represents an 18.3% premium to DVN’s current price levels. The Street-high price target of $67 suggests an upside potential of 36.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
