Diamondback Energy (FANG) Advances But Underperforms Market: Key Facts
In the latest market close, Diamondback Energy (FANG) reached $192.90, with a +0.15% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.
Shares of the energy exploration and production company have appreciated by 8.18% over the course of the past month, outperforming the Oils-Energy sector's gain of 5.25% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. It is anticipated that the company will report an EPS of $4.24, marking a 3.41% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.1 billion, indicating a 9.27% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.75 per share and revenue of $8.72 billion, indicating changes of -1.44% and +3.67%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.2% fall in the Zacks Consensus EPS estimate. Diamondback Energy presently features a Zacks Rank of #3 (Hold).
Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 10.85. This denotes a premium relative to the industry's average Forward P/E of 10.78.
Also, we should mention that FANG has a PEG ratio of 0.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. FANG's industry had an average PEG ratio of 0.71 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
