Diamondback Energy (FANG) Laps the Stock Market: Here's Why
Diamondback Energy (FANG) ended the recent trading session at $198.17, demonstrating a +0.83% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.11% gain on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the energy exploration and production company had gained 9.33% over the past month, outpacing the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 3.55% in that time.
The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. The company is slated to reveal its earnings on April 30, 2024. The company's upcoming EPS is projected at $4.23, signifying a 3.17% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.11 billion, up 9.58% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.93 per share and a revenue of $9 billion, indicating changes of -0.44% and +6.99%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Diamondback Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% downward. Right now, Diamondback Energy possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Diamondback Energy is presently trading at a Forward P/E ratio of 10.96. This signifies a discount in comparison to the average Forward P/E of 11.01 for its industry.
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 197, which puts it in the bottom 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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
