Back to top

Image: Bigstock

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

Read MoreHide Full Article

Diamondback Energy (FANG - Free Report) closed at $78.67 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's 0.2% gain on the day.

Prior to today's trading, shares of the energy exploration and production company had lost 13.68% over the past month. This has lagged the Oils-Energy sector's loss of 7.15% and the S&P 500's gain of 3.28% in that time.

FANG will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2021. In that report, analysts expect FANG to post earnings of $2.22 per share. This would mark year-over-year growth of 1380%. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 217.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.13 per share and revenue of $5.12 billion, which would represent changes of +200.33% and +82.05%, respectively, from the prior year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.93% higher. FANG is currently a Zacks Rank #3 (Hold).

Investors should also note FANG's current valuation metrics, including its Forward P/E ratio of 8.69. This valuation marks a discount compared to its industry's average Forward P/E of 9.56.

Meanwhile, FANG's PEG ratio is currently 0.4. 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.

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 18, putting it in the top 8% 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.

To follow FANG in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Diamondback Energy, Inc. (FANG) - free report >>

Published in