Diamondback Energy (FANG) closed the most recent trading day at $130.93, moving -1.27% from the previous trading session. This change lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the energy exploration and production company had gained 1.71% over the past month, outpacing the Oils-Energy sector's loss of 0.21% and the S&P 500's loss of 9.94% in that time.
Wall Street will be looking for positivity from Diamondback Energy as it approaches its next earnings report date. On that day, Diamondback Energy is projected to report earnings of $6.88 per share, which would represent year-over-year growth of 134.01%. Meanwhile, our latest consensus estimate is calling for revenue of $2.46 billion, up 29.02% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.30 per share and revenue of $9.83 billion. These totals would mark changes of +130.1% and +44.69%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% higher. Diamondback Energy currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Diamondback Energy is holding a Forward P/E ratio of 5.04. For comparison, its industry has an average Forward P/E of 5.11, which means Diamondback Energy is trading at a discount to the group.
Investors should also note that FANG has a PEG ratio of 0.23 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.21 as of yesterday's close.
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 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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