- Marzo 18, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Devon Energy
Devon Energy has been one of the renowned success stories during the past year, with its stock surging by more than 165%. The American oil and gas giant’s exploits in the famous Texas Permian focus on low-cost exploits in the Delaware Basin and Eagle-Ford.
Devon Energy has decided to scale down on exploration for the foreseeable future and re-arrange its capital structure.
Why is its strategy appealing to shareholders? Devon has already established itself as a cash cow, and it recently outlined its intention of being more shareholder-driven.
In other words, the firm has decided to de-risk its operational leverage to be more appealing to shareholders with its improved shareholder compensation mix.
This stock has a forward dividend yield of 6.7% and is undervalued by 17.8% relative to its five-year average price-to-earnings ratio. I believe we’ll see some serious momentum from DVN stock in the coming year, especially considering the systemic support from Russia-Ukraine sanctions.
Wall Street analysts think the stock is a Moderate Buy based on 13 Buy and five Hold ratings assigned during the past three months.
The average Devon price target of $59.47 implies 3.6% upside potential.
