Devon Energy Moves to Grade A as Fundamentals Strengthen

• Our read: EasyAlpha raised Devon Energy Corporation from C to A against its industry peers, with growth leading its profile.
• The day: Shares closed +2.1% on Thursday, September 10, with our sources showing no reported company-specific driver for the session.
• Watching: The next quarterly earnings report scheduled for Wednesday, November 4.

EasyAlpha grades Devon Energy Corporation A, raised from C when compared against its industry peers in the Energy sector. The change places the stock in the top quality tier among energy companies.

EasyAlpha grades each company against its industry peers. In historical data, companies graded A or B have demonstrated stronger fundamentals and have carried a lower risk of large drawdowns than companies graded D or E.

Across the company's file, growth stands as its strongest area. Devon reported quarterly revenue growth of +64.2% year over year, while the stock trades at 9.2 times forward earnings. The shares posted a modest advance on Thursday to close at $50.02, extending a steady multi-week climb.

Wall Street sentiment is broadly aligned with the upgraded profile. Out of the 27 analysts covering Devon, 88.9% rate the stock a buy, with an average price target of $59.81 that sits 19.6% above Thursday's close. Stifel Nicolaus gave the stock a buy rating.

A higher quality grade describes historical financial health rather than a guarantee of future gains. For Devon, the main factor to monitor is the dividend. The stock offers a dividend yield of 2.1%, while trading 4.4% below its 52-week high of $52.34. With shares +36.6% so far this year, the next scheduled update arrives on Wednesday, November 4.