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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 $79.08 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's daily gain of 1.11%.

Prior to today's trading, shares of the energy exploration and production company had lost 7.71% over the past month. This has lagged the Oils-Energy sector's loss of 5.26% and the S&P 500's gain of 4.72% 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. In that report, analysts expect FANG to post earnings of $1.79 per share. This would mark year-over-year growth of 23.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $962.13 million, up 7.02% from the year-ago period.

FANG's full-year Zacks Consensus Estimates are calling for earnings of $7.84 per share and revenue of $4.73 billion. These results would represent year-over-year changes of +157.89% and +68.31%, respectively.

Any recent changes to analyst estimates for FANG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 8.55% higher within the past month. FANG is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note FANG's current valuation metrics, including its Forward P/E ratio of 10.19. This represents a premium compared to its industry's average Forward P/E of 9.88.

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 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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