Advertisement
Singapore markets open in 3 hours 15 minutes

  • Straits Times Index

    3,272.72
    +47.55 (+1.47%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • Dow

    38,503.69
    +263.71 (+0.69%)
     

  • Nasdaq

    15,696.64
    +245.33 (+1.59%)
     

  • Bitcoin USD

    66,303.04
    -257.02 (-0.39%)
     

  • CMC Crypto 200

    1,426.91
    +12.15 (+0.86%)
     

  • FTSE 100

    8,044.81
    +20.94 (+0.26%)
     

  • Gold

    2,335.70
    -10.70 (-0.46%)
     

  • Crude Oil

    83.40
    +1.50 (+1.83%)
     

  • 10-Yr Bond

    4.5980
    -0.0250 (-0.54%)
     

  • Nikkei

    37,552.16
    +113.55 (+0.30%)
     

  • Hang Seng

    16,828.93
    +317.24 (+1.92%)
     

  • FTSE Bursa Malaysia

    1,561.64
    +2.05 (+0.13%)
     

  • Jakarta Composite Index

    7,110.81
    -7,073.82 (-49.87%)
     

  • PSE Index

    6,506.80
    +62.72 (+0.97%)
     

Why Earnings Season Could Be Great for Devon Energy (DVN)

Zacks Equity Research
·2-min read

Investors are always looking for stocks that are poised to beat at earnings season and Devon Energy Corporation DVN may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Devon Energy is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for DVN in this report.

In fact, the Most Accurate Estimate for the current quarter is currently a loss of 17 cents per share for DVN, narrower than the broader Zacks Consensus Estimate of a loss of 18 cents per share. This suggests that analysts have very recently bumped up their estimates for DVN, giving the stock a Zacks Earnings ESP of +6.38% heading into earnings season.

Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation Price and EPS Surprise

Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote

ADVERTISEMENT

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that DVN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Devon Energy, and that a beat might be in the cards for the upcoming report.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Devon Energy Corporation (DVN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research