Devon Energy Corporation (DVN:NYE) Analysts rate with a Strong Buy

STA Research
by: STA Research
Devon Energy Corporation

Based on the Devon Energy stock forecast from 16 analysts, the average analyst DVN price target is USD 82.39 over the next 12 months. Devon Energy Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own Devon Energy stock forecast is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. At the last closing, Devon Energy stock price was USD 62.85Devon Energy stock price has changed by +7.66% over the past week, +7.74% over the past month and +143.23% over the last year.

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.

Positive cash flow:

Devon Energy stock forecast had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Devon Energy stock forecast had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth:

Devon Energy stock price has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What we don’t like:

High volatility:

The total returns for Devon Energy stock price 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:

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

Overpriced on cashflow basis:

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

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