Devon Energy (DVN): Stock With Unusual Social Activity

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 or Stephanie Link.

Trade-Ideas LLC identified Devon Energy ( DVN) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Devon Energy as such a stock due to the following factors:

  • DVN has 16x the normal benchmarked social activity for this time of the day compared to its average of 3.00 mentions/day.
  • DVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $248.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on DVN:

Devon Energy Corporation, an independent energy company, engages primarily in exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs). The stock currently has a dividend yield of 1.5%. Currently there are 10 analysts that rate Devon Energy a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Devon Energy has been 2.7 million shares per day over the past 30 days. Devon Energy has a market cap of $24.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.72 and a short float of 1.9% with 2.07 days to cover. Shares are up 14.8% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Devon Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 20.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • DEVON ENERGY CORP has improved earnings per share by 42.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEVON ENERGY CORP swung to a loss, reporting -$0.48 versus $5.13 in the prior year. This year, the market expects an improvement in earnings ($4.31 versus -$0.48).
  • Net operating cash flow has declined marginally to $1,396.00 million or 2.10% when compared to the same quarter last year. Despite a decrease in cash flow DEVON ENERGY CORP is still fairing well by exceeding its industry average cash flow growth rate of -16.07%.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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