Trade-Ideas: Devon Energy (DVN) Is Today's Pre-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-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 $215.0 million.
- DVN traded 274,334 shares today in the pre-market hours as of 9:28 AM.
- DVN is up 2.7% today from yesterday'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 1.7%. DVN has a PE ratio of 14.8. Currently there are 14 analysts that rate Devon Energy a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Devon Energy has been 4.0 million shares per day over the past 30 days. Devon Energy has a market cap of $23.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.24 and a short float of 1.3% with 1.48 days to cover. Shares are down 5.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Devon Energy as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- DVN's very impressive revenue growth greatly exceeded the industry average of 19.6%. Since the same quarter one year prior, revenues leaped by 128.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that DVN's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
- Net operating cash flow has decreased to $963.00 million or 32.98% 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.
- 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 297.1% when compared to the same quarter one year ago, falling from $207.00 million to -$408.00 million.
- You can view the full Devon Energy Ratings Report.
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