Slow-and-Steady Winners, Part 2

The past week continued to be an active one for earnings. While the daily market moves can be driven by macro concerns or the momentum-stock-on/momentum-stock-off trade, earnings and outlooks ultimately drive stock prices. All the stocks below had earnings beats for the quarter, except one had a disappointing earnings announcement and outlook and the stock was subsequently taken out and shot. Today we'll update five more recommendations, a continuation of those we reviewed last week.

Devon Energy (DVN) reported better-than-expected earnings of $1.34 per share vs. a consensus of $1.26. The strong earnings upside was due to higher oil and natural gas liquid prices, higher Midstream earnings and lower costs. Management reiterated its goal of returning to consistent top-line growth and better margins, as more of its production is being generated from higher margin oil barrels and less from lower-margin dry-natural-gas output. There is a growing confidence in the investment community that DVN is well on its way to achieving this target. The company is expected to earn $5.81 per share in 2014, and $6.47 per share in 2015. There is upside to the numbers if the unnaturally low natural gas prices continue their recovery. We are looking for a pick-up in earnings and for the company to continue its portfolio repositioning and further unlock its shareholder value, thus we feel the stock is selling at an attractive valuation level....734 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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