Devon Energy Corp (DVN): Today's Featured Basic Materials Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Devon Energy ( DVN) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.1%. By the end of trading, Devon Energy rose $1.09 (1.8%) to $61.07 on light volume. Throughout the day, 2.3 million shares of Devon Energy exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in a price between $60-$61.26 after having opened the day at $60.02 as compared to the previous trading day's close of $59.98. Other companies within the Basic Materials sector that increased today were: Pacific Booker Minerals ( PBM), up 33.5%, Eurasian Minerals ( EMXX), up 10.6%, James River Coal Company ( JRCC), up 10.1%, and Energy Services of America Corporation ( ESA), up 10.1%.
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Devon Energy Corporation, an independent energy company, engages primarily in exploration, development, and production of oil, natural gas, and natural gas liquids. Devon Energy has a market cap of $24.28 billion and is part of the energy industry. The company has a P/E ratio of 10.1, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 3.3% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Devon Energy a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Devon Energy as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

On the negative front, Houston American Energy Corporation ( HUSA), down 17.6%, Penn Virginia Corporation ( PVA), down 15.9%, China Shen Zhou Mining & Resources ( SHZ), down 9.6%, and Geokinetics ( GOK), down 8.2%, were all laggards within the basic materials sector with Tenaris ( TS) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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