Friday, April 6, 2012

Devon Energy is fundamentally sound and a technical success

Devon Energy Corp. (NYSE:DVN) — This independent energy company is primarily engaged in the exploration and development of oil and natural gas. It has shifted its strategy to increase exposure to natural gas liquids (NGL) production, given the higher margins in NGL versus natural gas.

Analysts predict earnings of $6 in 2012, up from $5.50 in 2011, and $7.90 in 2013.Devonhas a huge cash position, which gives it great flexibility to acquire or use cash to its advantage in turbulent markets.

Technically DVN broke to an uptrend in early February, by penetrating a four-month triangle. It jumped over 10 points to $76 and has been consolidating within a very bullish flag.

The objective is $84 for traders. But this is a stock that should be in the portfolio of all long-term investors due to its quality and technical success.

Trade of the Day – Devon Energy Corp. (NYSE:DVN)


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