Diamondback Energy (FANG) Gains As Market Dips: What You Should Know
The latest trading session saw Diamondback Energy (FANG) ending at $189.50, denoting a +1.03% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the energy exploration and production company had gained 10.42% over the past month. This has outpaced the Oils-Energy sector's gain of 6.58% and the S&P 500's gain of 4.42% in that time.
The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. On that day, Diamondback Energy is projected to report earnings of $4.22 per share, which would represent year-over-year growth of 2.93%. Our most recent consensus estimate is calling for quarterly revenue of $2.1 billion, up 9.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.74 per share and a revenue of $8.72 billion, signifying shifts of -1.5% and +3.67%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.69% lower. Diamondback Energy presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 10.58 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.49.
Also, we should mention that FANG has a PEG ratio of 0.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 0.69.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 15% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
