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

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Diamondback Energy (FANG - Free Report) closed at $110.94 in the latest trading session, marking a +1.54% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day.

Prior to today's trading, shares of the energy exploration and production company had gained 38.11% over the past month. This has outpaced the Oils-Energy sector's gain of 14.41% and the S&P 500's gain of 1.34% in that time.

FANG will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2021. On that day, FANG is projected to report earnings of $2.70 per share, which would represent year-over-year growth of 335.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.47 billion, up 104.57% from the prior-year quarter.

FANG's full-year Zacks Consensus Estimates are calling for earnings of $10.35 per share and revenue of $5.57 billion. These results would represent year-over-year changes of +240.46% and +97.88%, respectively.

Investors might also notice recent changes to analyst estimates for FANG. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 2.1% higher within the past month. FANG is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note FANG's current valuation metrics, including its Forward P/E ratio of 10.56. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.56.

It is also worth noting that FANG currently has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FANG's industry had an average PEG ratio of 0.47 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 15, which puts it in the top 6% 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.


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