Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by Jimmy Jeong/Bloomberg

5 of 19

Piotroski's Best: Devon Energy

Business: Oil and gas exploration

Piotroski Score: 9

Devon Energy's (DVN) gross margins rose significantly, from 36 percent in 2009 to 45.6 percent in 2010, scoring well on Piotroski's metrics of a healthy company.

Outlook for the Company:

Bull Case: RBC Capital Markets analyst Leo P. Mariani points out that overall gas production growth should continue "as Marcellus Shale and associated gas from oil plays produce meaningful growth."

Bear Case: Since natural gas shales may provide supply for decades to come, any upturn in demand could be easily met by competitors through increased drilling, says Bloomberg Industries.

Advertisement