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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 $142.24, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 10.96%.

Prior to today's trading, shares of the energy exploration and production company had gained 4.13% over the past month. This has lagged the Oils-Energy sector's gain of 4.41% and outpaced the S&P 500's loss of 0.23% in that time.

Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. In that report, analysts expect Diamondback Energy to post earnings of $5.92 per share. This would mark year-over-year growth of 63.09%. Our most recent consensus estimate is calling for quarterly revenue of $2.21 billion, up 9.39% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest 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.

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 2.84% lower. Diamondback Energy is currently a Zacks Rank #3 (Hold).

Digging into valuation, Diamondback Energy currently has a Forward P/E ratio of 5.86. This represents a premium compared to its industry's average Forward P/E of 4.82.

Meanwhile, FANG's PEG ratio is currently 0.27. 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.18 based on yesterday's closing prices.

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 214, which puts it in the bottom 16% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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