Trade-Ideas: Devon Energy (DVN) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Devon Energy (DVN) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Devon Energy

(

DVN

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Devon Energy as such a stock due to the following factors:

  • DVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $234.3 million.
  • DVN is up 2.8% today from today's close.

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More details on DVN:

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada. The stock currently has a dividend yield of 2.3%. Currently there are 15 analysts that rate Devon Energy a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Devon Energy has been 5.4 million shares per day over the past 30 days. Devon Energy has a market cap of $17.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.35 and a short float of 2.8% with 2.25 days to cover. Shares are down 29.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Devon Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 517.2% when compared to the same quarter one year ago, falling from $675.00 million to -$2,816.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DEVON ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1,101.00 million or 46.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 523.17% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • DEVON ENERGY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DEVON ENERGY CORP turned its bottom line around by earning $3.89 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 46.3% in earnings ($2.09 versus $3.89).

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