Analysts rate Devon Energy Corporation (DVN:NYE) with a Strong Buy rating and a $84 target

STA Research
by: STA Research
Devon Energy Corporation

Based on the Devon Energy stock forecast from 15 analysts, the average analyst DVN stock price target is USD 84.53 over the next 12 months. Devon Energy Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of DVN stock forecast is Slightly Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, Devon stock price was USD 70.34Devon stock price has changed by -2.43% over the past week, +9.71% over the past month and +141.14% over the last year.

About Devon Energy Corporation (DVN:NYE):

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy Corporation was incorporated in 1971 and is headquartered in Oklahoma City, Oklahoma.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

DVN stock dividend has shown top quartile growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

DVN stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

DVN stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the DVN stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

Devon stock price has shown below median revenue growth in the previous 5 years compared to its sector.

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