Oil and gas leader Devon Energy joined forces with industry peers Williams Cos. and Oneok to transform America's heartland into a hub for energy technology startups. Meanwhile, DVN stock continues to prime a new buy point.
With the highest-possible 99 Composite Rating, Devon Energy earns a spot on the IBD 50 and IBD Big Cap 20. It also made the latest list of new buys by the best mutual funds, taking in roughly $190 million. DVN stock adds to the accolades by joining IBD Leaderboard to kick off the new week.
WMB stock also made the list of new buys by top funds, garnering investments totaling an estimated $194 million. Mirroring the Energy Select Sectors SPDR ETF, Williams and Oneok are also drilling for new entries.
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Devon Teams Up To Energize America's Heartland
Based in Oklahoma, Devon Energy is a leading independent oil and natural gas exploration and production company, with operations focused onshore in the U.S.
Last week, Devon announced a partnership with Williams and Oneok, as well as venture capital firm Energy Innovation Capital (EIC) and tech-focused nonprofit Tulsa Innovation Labs.
Spearheaded by EIC, the first-of-its-kind initiative aims to attract energy technology startups to the region. The initiative will provide access to resources including free office space and custom startup support services. EIC will also provide access to early-stage capital with a $50 million fund.
Together with founding corporate partners Devon Energy, Oneok and Williams, EIC will assist startups to pilot forward-looking technologies. The project is expected to create more than 1,700 jobs across the energy industry.
EIC brings a proven track record of nurturing energy tech startups, including market leaders in solar, wind, grid management and overall energy industry sustainability.
Devon Energy Fueling Triple-Digit Growth
In four of the last five quarters, Devon has produced triple-digit revenue growth. Over the last three years, the company has generated annual average sales growth of 26%.
Over the last three quarters as energy stocks drove the market indexes, Devon Energy pumped out a whopping 4,817% average quarterly earnings growth. For the current quarter, analysts forecast a 165% EPS increase.
The company scores all passing grades in Stock Checkup, including for its SMR Rating, which tracks sales growth, profit margins and return on equity.
DVN Stock Pumps Handle As Breakout Nears
After a sharp run-up since the pandemic, DVN stock finally ran out of gas after hitting a new high in June. It then tanked below its 10-week and 40-week moving averages before finding support.
DVN stock is now forming a cup with handle and has bounced back above its 21-day line. The buy point is 75.37.
Devon Energy's relative strength line slumped as the stock corrected but has come off its lows. Look for the RS line to reach a new 52-week high as DVN stock aims to ignite a breakout.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
