2024-04-12 10:55:22 ET
Summary
- Since my previous update, Devon Energy Corporation stock has significantly outperformed the S&P 500.
- The recent outperformance of the energy sector has bolstered Devon's recovery as demand/supply dynamics have improved.
- Devon's strong execution and enhanced capital allocation priorities have boosted investor confidence.
- I explain why Devon Energy's recovery is still far from over, notwithstanding the recent outperformance.
- Supported by a fundamentally strong business model and robust price action, Devon Energy Corporation stock remains a Buy.
Devon Energy Corporation ( DVN ) investors who ignored the market's pessimism in early 2024 and bought more shares did well. I upgraded DVN in early February 2024, assessing a timely opportunity for DVN holders to add exposure. I postulated that DVN was close to a cycle bottom, even as it underperformed the energy sector ( XLE ) peers in 2023. With the reversal from its January lows, DVN has significantly outperformed the S&P 500 (SP500, SPX , SPY ) since my previous update, up nearly 34%....
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Devon Energy: The Turnaround Is Just Getting Started