Devon Energy looks for liquid growth

A stock you might want to add to your watch list is Devon Energy (DVN).  The company realizes that natural gas prices will continue to stay low but liquid oil prices will probably rise.  That being said they are cutting back on NG exploration and plowing ahead full tilt into discovering new oil reserves.

Devon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration, development and production, and in the acquisition of producing properties. Devon currently owns oil and gas properties concentrated in four operating divisions: the Northern Division; the Southern Division,; Canada; and the International Division.

The company came under my radar while screening on Barchart for S&P 100 stocks enjoying recent positive price momentum.  The stock has a 100% Barchart technical buy signal.  It hit 11 new highs and was up 9.75% in the last month.  The stock trades around 77.47 which is well above its 50 day moving average of 70.93 and enjoys a Relative Strength Index of 73.99% which is on the rise.

Wall Street brokerage analysts have 20 buy and 8 hold reports published with no negative recommendations.  Although overall revenue is not expected to increase they project an annual earnings per share growth of 11.60% for at least the next 5 years.

General investor sentiment is very high with the CAPS members on Motley Fool voting 1,874 to 56 that the stock will beat the market.  The more experienced All Stars are in agreement with a vote of 611 to 5.  Fool notes that 26 of the last 27 Wall Street columnists articles have been positive.

Reasons to put on your watch lists:

• 100% Barchart technical buy signal
• Relative Strength Index of 73.99% and rising
• All 28 Wall Street brokerage analysts following the stock have released Buy or Hold recommendations
• High investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.