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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know

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Diamondback Energy (FANG) closed the most recent trading day at $123.61, moving +0.26% from the previous trading session. This change lagged the S&P 500's 1.21% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the energy exploration and production company had gained 0.8% over the past month, lagging the Oils-Energy sector's gain of 2.47% and the S&P 500's gain of 3.2% in that time.

Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be August 1, 2022. On that day, Diamondback Energy is projected to report earnings of $6.66 per share, which would represent year-over-year growth of 177.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.51 billion, up 49.15% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.66 per share and revenue of $9.82 billion. These totals would mark changes of +124.5% and +44.42%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.92% lower within the past month. Diamondback Energy currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 4.81 right now. This represents a discount compared to its industry's average Forward P/E of 4.98.

We can also see that FANG currently has a PEG ratio of 0.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.23 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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