2024-03-08 07:30:00 ET
Summary
- Energy accounts for more than 10% of the S&P 500's EBITDA but less than 4% of its market cap.
- Energy stocks are currently undervalued compared to other sectors, with the potential for strong returns.
- Devon Energy stands out thanks to a healthy balance sheet, low breakeven prices, and its ability to reward investors through potentially elevated buybacks and (special) dividends.
Introduction
It's time to talk about Energy - yes, again.
Although I try to keep a fair balance between dividend growth and high yield, energy, and non-energy, and a wide variety of other topics, I have increasingly focused on energy in recent months, as I have started to like the value even more - especially in light of the current AI frenzy.
The other day, I worked my way through Devon Energy's ( DVN ) 4Q23 presentation, which showed the chart below.
As we can see, energy accounts for more than 10% of the S&P 500's EBITDA. However, it accounts for less than 4% of its market cap....
Read the full article on Seeking Alpha
For further details see:
Value Vs. Growth: Why Devon Energy Is The Smarter Investment