Devon Energy: A Strong Yield From A Rock Solid Company
Summary
- Devon Energy (DVN) is one of our top choices in the energy sector due to its strong financials, operational efficiency, and attractive valuation.
- The company boasts robust margins, low leverage, and a new strategic acquisition, positioning it well for an inevitable downturn, as well as new top line growth.
- The stock's valuation is compelling, currently trading with significant discounts on key metrics compared to both peers and historical multiples.
- To boost yield, consider selling the December 20th, $37.50 strike put options for a potential 14.1% annualized return.
- We rate DVN a 'Buy'.
SimonSkafar
Right now is an interesting time to be considering an investment into the energy sector (XLE).
On one hand, many public oil companies are flush with funds from the recent energy boom. Hundreds of billions of dollars have flowed back
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