Devon Energy Corporation (DVN) is a major independent oil and natural gas exploration and production company based in Oklahoma. With a market cap of $24.8 billion, Devon focuses on finding, developing and producing oil, natural gas, and natural gas liquids (NGLs) primarily onshore in the United States across multiple prolific basins such as the Delaware Basin, Eagle Ford, Anadarko Basin, Powder River Basin and Williston Basin.
The energy giant has slightly underperformed the broader market over the past year, soaring 14.2% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 15% surge. However, momentum has clearly strengthened in recent months, with the stock surging 16.8% over the past six months, comfortably outpacing the benchmark index’s 9.2% rise.
On a sector-specific basis, Devon has been even more impressive, outperforming the iShares U.S. Oil & Gas Exploration & Production ETF’s (IEO) 2.1% decline over the past 52 weeks and 5.2% rise over the past six months.
On Jan. 23, Devon Energy shares climbed more than 2% as energy stocks rallied in tandem with a sharp rebound in crude oil prices, with WTI crude rising over 3% to a one-week high, boosting investor sentiment toward oil producers.
For FY2025 that ended in December, analysts expect DVN to report a 18.3% year-over-year decline in earnings to $3.94 per share. Moreover, the company has exceeded the Street’s bottom-line estimates in three of the past four quarters, while missing on another occasion.
DVN holds a consensus “Moderate Buy” rating overall, supported by 21 “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Strong Sell” among 30 covering analysts.
The current overall consensus marks a slight softening in sentiment from last month’s “Strong Buy” rating.
On Jan. 27, Wells Fargo analyst Hanwen Chang reaffirmed his “Overweight” rating on Devon Energy. The analyst also raised the stock’s price target to $43 from $37, signaling stronger confidence in the company’s earnings outlook and valuation potential.
DVN’s mean price target of $44.93 indicates a 12.8% premium to current price levels, while its Street-high target of $62 suggests a staggering 55.7% upside potential.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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