In the past 30 days, 14 analysts have increased their EPS estimates for this energy company.
Devon Energy Corporation (DVN)
From Cabot Growth Investor
As growth stocks have come back to life, money has flowed out of cyclical stocks—so it goes in the rotational environment that is 2021. Still, as opposed to many industrials, financials and transport titles, energy stocks have thus far retreated normally, so we still think the group in general (and Devon Energy in particular) will see higher prices ahead. Indeed, despite some fears about slowing growth, Fed rate hikes, the Delta variant of the virus and more, oil prices are still holding north of $70, while natural gas prices have actually surged (partly due to the crazy heat in many parts of the country—it was 99 in Boston this week!).
While we don’t like to do too deep of a dive into numbers projections, the fact that the company paid a 34 cent per-share dividend based on Q1 cash flow (paid out yesterday) should translate into more than that for Q2, as prices have clearly been higher during the past three months. Of course, we’re never complacent, especially with energy stocks, which can turn tail in a hurry, but we continue to think DVN will see higher prices ahead.
If you don’t own any, we’re OK taking a swing at it here. BUY
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, July 1, 2020