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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know
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In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $130.97, marking a +0.58% move from the previous day. This change lagged the S&P 500's 0.94% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the energy exploration and production company had gained 9.24% over the past month. This has lagged the Oils-Energy sector's gain of 11.08% and outpaced the S&P 500's loss of 4.63% in that time.
Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. On that day, Diamondback Energy is projected to report earnings of $3.39 per share, which would represent year-over-year growth of 313.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.68 billion, up 117.9% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 5.18% higher within the past month. Diamondback Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 7.11. Its industry sports an average Forward P/E of 6.12, so we one might conclude that Diamondback Energy is trading at a premium comparatively.
Meanwhile, FANG's PEG ratio is currently 0.32. 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 0.27 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 71, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know
In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $130.97, marking a +0.58% move from the previous day. This change lagged the S&P 500's 0.94% gain on the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the energy exploration and production company had gained 9.24% over the past month. This has lagged the Oils-Energy sector's gain of 11.08% and outpaced the S&P 500's loss of 4.63% in that time.
Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. On that day, Diamondback Energy is projected to report earnings of $3.39 per share, which would represent year-over-year growth of 313.41%. Meanwhile, our latest consensus estimate is calling for revenue of $1.68 billion, up 117.9% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 5.18% higher within the past month. Diamondback Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 7.11. Its industry sports an average Forward P/E of 6.12, so we one might conclude that Diamondback Energy is trading at a premium comparatively.
Meanwhile, FANG's PEG ratio is currently 0.32. 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 0.27 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 71, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.