DVN Stock Recent News

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Devon Energy's stock underperformed its peers in the oil and gas exploration and production sector through 2023. The company has struggled with poor capital efficiency and weaker-than-expected oil production growth. However, management is taking steps to improve execution and capital efficiency, and Q4 results suggest those moves are paying off.

Devon Energy has seen a bounce in its stock following solid earnings, but the stock is still cheap due to strong cash flows. The energy company has improved efficiency by cutting capital spending plans for 2024 and focusing on maintaining oil volumes rather than aggressively chasing market share. Devon Energy's low breakeven level allows it to generate substantial free cash flow, offering a nearly 10% yield at the current market cap with WTI prices around $80/bbl.

DVN continues to be undervalued compared to its peers, with a prospective market re-rating likely to bring forth excellent upside potential. The management's raised fixed dividends also brought forth expanded forward yields, further demonstrating its shareholder friendly policies, aided by the sustained share retirement. We may see DVN offer higher variable dividends in 2024, due to the improved balance sheet and efficient working capital plans, further boosted by the elevated crude oil prices.

Energy accounts for more than 10% of the S&P 500's EBITDA but less than 4% of its market cap. Energy stocks are currently undervalued compared to other sectors, with the potential for strong returns. Devon Energy stands out thanks to a healthy balance sheet, low breakeven prices, and its ability to reward investors through potentially elevated buybacks and (special) dividends.

To say that market optimism, global production disruptions, and geopolitical tensions are all to blame for the recent spike in oil prices is correct. The rally started because of the risks in the Middle East and Russia and the disruption in global production, but has spread as investors have grown more bullish on commodities, generally.

Devon Energy (DVN) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

Energy stocks trade at historically low levels. Investors are bidding up tech stocks and overlooking the growth still ahead for the energy sector.

Devon Energy is prioritizing share repurchases this year. The oil company is 3 times cheaper than the broader market.

Devon Energy delivered record crude oil production in 2023. The oil company doesn't expect to repeat that feat in 2024.