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Diamondback Energy (FANG) Stock Sinks As Market Gains: What You Should Know

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Diamondback Energy (FANG - Free Report) closed at $75.20 in the latest trading session, marking a -1.45% move from the prior day. This change lagged the S&P 500's 0.42% gain on the day.

Prior to today's trading, shares of the energy exploration and production company had lost 6.87% over the past month. This has lagged the Oils-Energy sector's loss of 3.23% and the S&P 500's gain of 6.32% in that time.

Investors will be hoping for strength from FANG as it approaches its next earnings release, which is expected to be May 3, 2021. The company is expected to report EPS of $1.52, up 4.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $884.55 million, down 1.61% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.43 per share and revenue of $4.6 billion. These totals would mark changes of +144.41% and +63.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FANG. Recent revisions tend to reflect the latest 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 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.39% higher. FANG is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that FANG has a Forward P/E ratio of 10.15 right now. Its industry sports an average Forward P/E of 11.03, so we one might conclude that FANG is trading at a discount comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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