Back to top

Image: Bigstock

Diamondback Energy (FANG) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $121.52, marking a -1.72% move from the previous day. This change lagged the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.

Heading into today, shares of the energy exploration and production company had gained 12.07% over the past month, outpacing the Oils-Energy sector's gain of 4.81% and the S&P 500's gain of 2.36% in that time.

Wall Street will be looking for positivity from Diamondback Energy as it approaches its next earnings report date. In that report, analysts expect Diamondback Energy to post earnings of $3.54 per share. This would mark year-over-year growth of 331.71%. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 120.07% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Diamondback Energy. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.4% lower. Diamondback Energy is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Diamondback Energy is holding a Forward P/E ratio of 7.1. For comparison, its industry has an average Forward P/E of 5.74, which means Diamondback Energy is trading at a premium to the group.

Meanwhile, FANG's PEG ratio is currently 0.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.27 as of yesterday's close.

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 177, putting it in the bottom 31% 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

In-Depth Zacks Research for the Tickers Above

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

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

Published in