The stock market hasn't been too kind to Devon Energy (NYSE: DVN) this year, with the stock down over 12% year to date (YTD) (as of Oct. 18). Some would point to Devon Energy's performance this year as just another example of the energy sector's cyclical nature, but I'd point to the performance of similar companies to show why the market may be unfairly punishing it.

There are three areas where energy companies operate: upstream, midstream, and downstream. Companies operating upstream, such as Devon Energy, deal with the exploration, drilling, and production of oil and natural gas.

Compared to Devon Energy's performance, many of its upstream counterparts are performing well this year. Take Occidental Petroleum and Diamondback Energy, for example, up over 9% and 29% YTD, respectively. Recent pessimism toward Devon Energy presents a good time for investors to go bargain hunting.

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Source Fool.com