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Diamondback Energy (FANG) Gains As Market Dips: What You Should Know
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Diamondback Energy (FANG - Free Report) closed the most recent trading day at $149.63, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the energy exploration and production company had gained 12.57% over the past month, outpacing the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 6.69% in that time.
Diamondback Energy will be looking to display strength as it nears its next earnings release. On that day, Diamondback Energy is projected to report earnings of $6.61 per share, which would represent year-over-year growth of 175.42%. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 44.66% from the prior-year quarter.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $26.11 per share and revenue of $9.8 billion. These results would represent year-over-year changes of +128.43% and +44.17%, respectively.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.49% higher. Diamondback Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 5.66. This valuation marks a premium compared to its industry's average Forward P/E of 5.53.
We can also see that FANG currently has a PEG ratio of 0.26. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.26 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 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Diamondback Energy (FANG) Gains As Market Dips: What You Should Know
Diamondback Energy (FANG - Free Report) closed the most recent trading day at $149.63, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the energy exploration and production company had gained 12.57% over the past month, outpacing the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 6.69% in that time.
Diamondback Energy will be looking to display strength as it nears its next earnings release. On that day, Diamondback Energy is projected to report earnings of $6.61 per share, which would represent year-over-year growth of 175.42%. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 44.66% from the prior-year quarter.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $26.11 per share and revenue of $9.8 billion. These results would represent year-over-year changes of +128.43% and +44.17%, respectively.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.49% higher. Diamondback Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 5.66. This valuation marks a premium compared to its industry's average Forward P/E of 5.53.
We can also see that FANG currently has a PEG ratio of 0.26. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.26 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 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.