Like other energy companies, Devonian energy (DVN) has had a great run over the past year. For example, income growth is up to 999%. On Tuesday Relative Strength Rating (RS) for Devon stock jumped 12 points into a higher percentage as it went from 63 to 75. The question now is: Can it do it again this year after oil prices drop from highs most of last summer?
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The 75 RS rating places Devon stock in the top 25% of stocks, regardless of industry, in terms of price performance. It is rapidly ending on an important demarcation point best stocks to buy and watch. An RS rating north of 80 in the early stages of their move is an indicator that a stock has strong upside potential. See if Devon Energy can continue to recover and break through that threshold.
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Devon stock is in the top 10% of total stocks
Among other important ratings, Oklahoma City-based Devon has 79 Earnings Per Share Ratedover 99. Devon stock also has 90 Overall rating, which puts it in the top 10% of stocks across a major index group. Even better, it carries an A SMR . Rating (revenue + margin + return on equity) on a scale of A to E with A being excellent. Its one yellow flag is the letter D- Cumulative/Distribution RatingThis suggests that institutional investors like mutual funds and insurance company funds are selling more stocks than buying at the moment.
One reason for big-money hesitancy could be that while the watchlist candidate is still putting up strong numbers, its revenue and profit growth has slowed compared to the previous year. with the previous strong increase last year.
Devon stock currently doesn’t offer a proper buying opportunity even though it has skyrocketed over the past few years. See if the stock continues to build a sound pattern that could trigger a new rally. Its shares fell to 4.70 a share at the end of March 2020 amid the Covid market crash. It closed above 63 on Tuesday, up 1.5% on the day.
Profit growth soars
Devon Energy showed 102% EPS growth in its latest quarterly report, to $2.18. Three periods ago, its EPS increased by more than 999%, 318% and then 322%. Revenue rose 57% to $5.43 billion last quarter.
Devon stock holds the 17th position among its peers in the US Oil & Gas Exploration & Production industry group. diamond energy (FANG) and Peak energy (HPK) are among the group’s most overvalued stocks.
IBD’s proprietary Relative Strength Ratings determine market leadership with scores ranging from 1 (worst) to 99 (best). The score shows a stock’s price behavior over the past 52 weeks relative to all other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
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