Analysts remain bullish on Devon Energy stock, with 16 of 30 having a Buy or Strong Buy rating. Another 13 have Hold ratings. At a share price of around $53.00, the upside potential based on a median price target of $58.00 is 5.7%. At the high target of $77.00, the upside potential is 45.3%.
Consensus estimates call for second-quarter revenue of $3.54 billion, down 7.4% sequentially and 59.0% lower year over year. Adjusted EPS are forecast at $1.20, down 17.9% sequentially and by 53.7% year over year. For the full 2023 fiscal year, Devon is expected to post EPS of $5.59, down 32.8%, on revenue of $115 billion, down 21.8%.
Devon’s stock trades at 9.5 times expected 2023 EPS, 8.6 times estimated 2024 earnings of $6.19 and 8.8 times estimated 2025 earnings of $6.01 per share. The 52-week trading range is $44.03 to $78.82. Devon pays an annualized variable dividend of $4.51 (yield of 8.51%). Total shareholder return for the past year was negative 5.22%.
Starbucks
Starbucks Corp. (NASDAQ: SBUX) posted a 52-week high in early May. Since then, the shares have dropped by about 13%. For the past 12 months, shares are up 19.6%. Unlike other chain restaurants, Starbucks has not had to lower its prices to keep customers returning to the company’s stores. On top of that, customers have been spending more on their purchases. After a record-setting first-quarter revenue total, analysts have pushed the bar even higher.
Analyst sentiment is turning cautious on the stock though, with 20 of 32 having a Hold rating and 12 assigning a Buy or Strong Buy rating. At a share price of around $101.00, the upside potential based on a median price target of $112.00 is 10.9%. At the high price target of $150.00, the upside potential is 48.5%.
For the company’s third quarter of fiscal 2023, analysts anticipate revenue of $9.28 billion, up 6.5% sequentially and by 13.9% year over year. Adjusted EPS are pegged at $0.95, up 28.6% sequentially and 13.1% higher year over year. For the fiscal year, estimates call for EPS of $3.42, up 15.5%, on sales of $36.05 billion, up 11.8%.
Starbucks stock trades at 29.6 times expected 2023 EPS, 24.7 times estimated 2024 earnings of $4.09 and 21.1 times estimated 2025 earnings of $4.80 per share. The 52-week range is $81.67 to $115.48. Starbucks pays an annual dividend of $2.12 (yield of 2.09%). Total shareholder return for the past year was 22.17%.
Uber
Over the past year, shares of Uber Technologies Inc. (NYSE: UBER) have more than doubled, with most of that growth coming in 2023. Since the darkest days of the pandemic, Uber’s revenue has increased by about 125%, and it has reported a profit in all but two quarters since the first quarter of 2020. Two weeks ago, the California Supreme Court ruled against the company in a class-action lawsuit brought by an Uber Eats driver. The suit raises the question (again) of whether Uber drivers are contractors or employees.
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