Devon Energy Corporation (NYSE: DVN) Stock Forecast: Bearish Sentiment Portends -23.49% Downside In 2022

Devon Energy Corporation (NYSE:DVN) price is hovering higher on Tuesday, August 16, jumping 1.90% above its previous close.

A look at today’s price movement shows that the recent level at last check reads $63.57, with intraday deals fluctuating between $61.40 and $64.395. The company’s 5Y monthly beta was ticking 2.56 while its P/E ratio in the trailing 12-month period read 8.06. Taking into account the 52-week price action we note that the stock hit a 52-week high of $79.40 and 52-week low of $23.74. The stock added 20.60% on its value in the past month.

Devon Energy Corporation, which has a market valuation of $40.93 billion, is expected to release its quarterly earnings report Oct 31, 2022 – Nov 04, 2022. The company stock has a Forward Dividend ratio of 4.66, while the dividend yield is 7.33%. It is understandable that investor optimism is growing ahead of the company’s current quarter results. Analysts tracking DVN have forecast the quarterly EPS to grow by 2.45 per share this quarter, while the same analysts predict the annual EPS to hit $8.98 for the year 2022 and up to $9.39 for 2023. In this case, analysts estimate an annual EPS growth of 154.40% for the year and 4.60% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $5.26 billion, with the likely lows of $4.88 billion and highs of $6.08 billion. The average estimate suggests sales growth for the quarter will likely rise by 51.70% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $20.66 billion for the company’s annual revenue in 2022. Per this projection, the revenue is forecast to grow 69.30% above that which the company brought in 2022.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with 3 upward and no downward reviews. On the technical perspective front, indicators give DVN a short term outlook of Hold on average. Looking at the stock’s medium term indicators we note that it is averaging as a 50% Buy, while an average of long term indicators are currently assigning the stock as 100% Buy.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 30 analysts have assigned DVN a recommendation rating as follows: 12 rate it as a Hold; 15 advise Buy while 2 analyst(s) assign an Overweight rating. 1 analyst(s) have tagged the Devon Energy Corporation (DVN) stock as Underweight, with 0 recommending Sell. In general, analysts have rated the stock Overweight, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 0.23. The overview shows that DVN’s price is at present 9.41% off the SMA20 and 7.49% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 60.35, with weekly volatility standing at 4.27%. The indicator jumps to 4.72% when calculated based on the past 30 days. Devon Energy Corporation (NYSE:DVN)’s beta value is holding at 2.57, while the average true range (ATR) indicator is currently reading 2.99. Considering analysts have assigned the stock a price target range of $57.90-$115.00 as the low and high respectively, we find the trailing 12-month average consensus price target to be $77.89. Based on this estimate, we see that today’s price at last check is roughly 10.62% off the estimated low and -77.52% off the forecast high. Investors will no doubt be excited to see the share price fall to $80.00, which is the median consensus price, and at that level DVN would be -23.49% from recent price.

Turning out attention to how the Devon Energy Corporation stock has performed in comparison to its peers in the industry, here’s what we find: DVN’s stock is 1.90% on the day and 133.83% in the past 12 months, while EOG Resources Inc. (EOG) traded 1.34% in the latest session and is positioned 72.76% up on its price 12 months ago. Another comparison is with Pioneer Natural Resources Company (PXD) whose stock price is up 0.61% in the current trading session, and has flourished 61.74% over the past year. Also, Occidental Petroleum Corporation (OXY) is currently showing up trend of 0.62% while its price kept floating at 149.48% over the past year. As for Devon Energy Corporation, the P/E ratio stands at 8.06 lower than that of EOG Resources Inc.’s at 14.98 and Pioneer Natural Resources Company’s 9.51. Elsewhere in the market, the S&P 500 Index has stumbled -0.39% in today’s early trading, with the Dow Jones Industrial also seeing a positive session on the day with 0.14%.

An analysis of the Devon Energy Corporation (NYSE:DVN) stock in terms of its daily trading volume indicates that the 3-month average is 12.42 million. However, this figure increases on the past 10-day timeline to an average of 12.34 million.

Current records show that the company has 652.00M in outstanding shares. The insiders’ percentage holdings are 0.60% of outstanding shares while the percentage share held by institutions stands at 85.20%. The stats also highlight that short interest as of Jul 28, 2022, stood at 13.21 million shares, which puts the short ratio at the time at 1.29. From this we can glean that short interest is 2.02% of company’s current outstanding shares. Notably, we see that shares short in July fall slightly given the previous month’s figure stood at 13.72 million. But the 44.31% upside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.

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