Oil prices just endured a record-setting sell-off, falling for 12 consecutive sessions amid concerns about oversupply and waning demand. However, one oil-and-gas stock’s slide may not be over, if past is prologue. Specifically, the shares of Devon Energy (DVN) tend to struggle the week of Thanksgiving, and could be headed for new lows soon.
DVN has emerged as one of the worst stocks to own during the holiday-shortened week, ending higher just 30% of the time over the past 10 years. What’s more, the security has surrendered an average of 2.17% during Thanksgiving week — easily the steepest average loss of all stocks on the list, curated by Schaeffer’s Senior Quantitative Analyst Rocky White.
Since notching an annual high of $46.54 in mid-July, Devon Energy stock has plummeted roughly 34% to trade around $30.59. The security is within striking distance of its April low of $29.82, though the round $30 area has acted as support for the shares on several occasions since mid-2017. Another 2.17% drop from current levels would place DVN just south of $30.
Despite DVN’s quest for new lows, not to mention oil’s record-breaking descent, analysts remain optimistic toward the commodities concern. In fact, 14 analysts maintain “strong buy” or “buy” endorsements, compared to five issuing lukewarm “holds” and not a single “sell” rating to be found. Plus, the consensus 12-month price target on DVN stands at a lofty $50.70 — representing expected upside of nearly 66% to the equity’s current perch. Should the oil-and-gas stock once again retreat during Thanksgiving week, a round of overdue downgrades and price-target cuts could exacerbate selling pressure.