Devon Energy (DVN) Is Cheap Versus Rivals -Barron's
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Shares of Devon Energy (NYSE: DVN) could see interest come Monday following a positive write-up in Barron's over the weekend, which calls the stock cheap compared to rivals.
According to the article, Devon Energy trades at 14x 2011 EPS estimates and 11x next year's, versus the industry average P/E ratio of 19x. On an EV/EBITDA basis, Devon trades at 6x. This versus 6.8x for Chesapeake Energy (NYSE: CHK) and 7.8x for Anadarko Petroleum (NYSE: APC).
The discount comes despite the company making the right moves, including selling its international properties and assets in the Gulf of Mexico for about $8 billion. In addition, production should rise 6%-8% this year. With a focus on crude and high-margin gas liquids, earnings should jump to nearly $8 per share in 2012, up from the expected $6 per share this year and last.
Barron's claims Devon shares will easily top $100 per share in the next year, up from Friday's close of $86.44.
According to the article, Devon Energy trades at 14x 2011 EPS estimates and 11x next year's, versus the industry average P/E ratio of 19x. On an EV/EBITDA basis, Devon trades at 6x. This versus 6.8x for Chesapeake Energy (NYSE: CHK) and 7.8x for Anadarko Petroleum (NYSE: APC).
The discount comes despite the company making the right moves, including selling its international properties and assets in the Gulf of Mexico for about $8 billion. In addition, production should rise 6%-8% this year. With a focus on crude and high-margin gas liquids, earnings should jump to nearly $8 per share in 2012, up from the expected $6 per share this year and last.
Barron's claims Devon shares will easily top $100 per share in the next year, up from Friday's close of $86.44.
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