Devon Energy Corporation (DVN), headquartered in Oklahoma City, is a leading independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. With a market cap of $25.05 billion, Devon is a key player in the energy sector, leveraging its expertise and innovative technologies to deliver sustainable energy solutions while driving value for shareholders.
Companies valued at $10 billion or more are typically classified as “large-cap” stocks and Devon Energy perfectly fits into this category. Devon believes in creating lasting shareholder value while being dedicated to sustainability and community engagement.
DVN shares are trading 26.6% below their 52-week high of $55.09, which they hit on Apr. 12. Also, the stock has declined 12% over the past three months, significantly underperforming the Dow Jones Industrial Average Index’s ($DOWI) 7.3% returns over the same time frame.
In the longer term, DVN is down 10.7% on a YTD basis, and the shares have declined 18.6% over the past 52 weeks. The Dow has gained 10.4% in 2024 and 20.2% over the past year.
To confirm its bearish trend, DVN has been trading below its 50-day moving average since mid-July and the 200-day moving average since late July.
On Aug. 6, Devon Energy reported Q2 earnings. The stock gained 1.2% on the earnings release day and 2.8% in the next trading session. DVN raised the full-year 2024 production forecast for the second consecutive quarter. In addition, on Jul.15, Devon Energy closed up more than 3% amid speculation that a Trump win in the upcoming election will lead to reduced regulation in U.S. oil drilling.
Highlighting the contrast in performance, rival Marathon Oil Corporation (MRO) has outperformed DVN, with a 1.8% gain over the 52 weeks.
Despite DVN's recent underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 24 analysts in coverage. The mean price target is $55.74, which suggests a premium of 37.8% to its current levels.
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.
