Oklahoma City, Oklahoma-based Devon Energy Corporation (DVN) is an independent energy company with a market cap of $23.7 billion. It explores, develops, and produces oil, natural gas, and natural gas liquids.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and DVN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the oil & gas E&P industry. With a focus on advanced drilling, well productivity, and capital discipline, the company remains a prominent player in the industry.
This energy company is currently trading 3.6% below its 52-week high of $38.88, reached on Feb. 20. Shares of DVN have gained 7.8% over the past three months, outperforming the Dow Jones Industrial Average’s ($DOWI) 5.6% rise during the same time frame.
Moreover, on a YTD basis, shares of DVN are up 14.5%, compared to DOWI’s 12.7% return. However, in the longer term, DVN has surged 4.2% over the past 52 weeks, underperforming DOWI’s 7.1% uptick over the same time frame.
To confirm its recent bullish trend, DVN has been trading above its 200-day and 50-day moving averages since early November.
DVN delivered better-than-expected Q3 earnings results on Nov. 5, and its shares closed up marginally in the following trading session. The company's total revenue improved 7.6% year-over-year to $4.3 billion, surpassing consensus estimates by 5.1%. Higher oil, gas and NGL sales, along with an increase in marketing and midstream revenues, contributed to its topline beat. Moreover, its adjusted EPS came in at $1.04, up 11.8% from analyst expectations of $0.93.
DVN has considerably outperformed its rival, EOG Resources, Inc. (EOG), which declined 13.7% over the past 52 weeks and 8.5% on a YTD basis.
Looking at DVN’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 29 analysts covering it, and the mean price target of $46.07 suggests a 23% premium to its current price levels.
