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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 $119.70, marking a +0.39% move from the previous day. The stock lagged the S&P 500's daily gain of 3.06%. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Coming into today, shares of the energy exploration and production company had lost 18.57% in the past month. In that same time, the Oils-Energy sector lost 12.66%, while the S&P 500 lost 4.31%.

Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release. The company is expected to report EPS of $6.62, up 175.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 44.83% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $26.16 per share and revenue of $9.86 billion, which would represent changes of +128.87% and +45.04%, respectively, from the prior year.

Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.54% higher. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Diamondback Energy is holding a Forward P/E ratio of 4.56. Its industry sports an average Forward P/E of 4.23, so we one might conclude that Diamondback Energy is trading at a premium comparatively.

Meanwhile, FANG's PEG ratio is currently 0.21. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.21 at yesterday's closing price.

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 48, which puts it in the top 19% 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.


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