Analysts Upgrade Devon Energy's Outlook Amid Growth Projections

Analysts at Wolfe Research have upgraded Devon Energy's outlook from Peer Perform to Outperform, projecting significant price increase potential. The energy sector stock shows promising revenue growth and earnings per share expectations.

Date: 04-01-2025

AI Rating: 7

Earnings Per Share (EPS)
The projected annual non-GAAP EPS for Devon Energy is 6.48. This figure is noteworthy as it indicates expectations for profitability, potentially leading to a favorable investor sentiment and an upward movement in stock prices.

Revenue Growth
The projected annual revenue for Devon Energy stands at 15,902MM, representing a 9.45% increase. This positive growth indicator suggests robust business operations and a competitive position in the energy sector. An increase in revenue usually implies higher future earnings, which can lead to a higher stock price as investors seek to capitalize on the company's growth potential.

Fund Sentiment and Shareholder Activity
There are 2,037 funds or institutions reporting positions in Devon Energy, with a slight increase in ownership by 0.20% over the last quarter. The total shares owned by institutions saw an 8.78% rise, reaching 571,632K shares. This reflects growing institutional confidence in Devon Energy, which could positively influence stock performance. However, it's important to note some major shareholders, such as Vanguard Total Stock Market Index Fund and XLE - The Energy Select Sector SPDR Fund, have decreased their portfolio allocation, indicating a mixed sentiment among different investors.
Overall, while the upgrade from Wolfe Research, along with the revenue and EPS projections, paints a positive outlook for Devon Energy, the individual shareholder activities and mixed fund sentiments may show potential caution among investors regarding short-term fluctuations.

Stocks: DVN