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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know

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Diamondback Energy (FANG - Free Report) closed the most recent trading day at $135.17, moving +1.4% from the previous trading session. This change lagged the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Coming into today, shares of the energy exploration and production company had lost 7.53% in the past month. In that same time, the Oils-Energy sector lost 2.11%, while the S&P 500 gained 2.28%.

Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be May 1, 2023. On that day, Diamondback Energy is projected to report earnings of $4.77 per share, which would represent a year-over-year decline of 8.27%. Meanwhile, our latest consensus estimate is calling for revenue of $2.09 billion, down 13.16% from the prior-year quarter.

FANG's full-year Zacks Consensus Estimates are calling for earnings of $21.14 per share and revenue of $8.9 billion. These results would represent year-over-year changes of -11.99% and -7.71%, respectively.

It is also important to note the recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.43% lower. Diamondback Energy currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Diamondback Energy currently has a Forward P/E ratio of 6.3. This represents a premium compared to its industry's average Forward P/E of 6.2.

Investors should also note that FANG has a PEG ratio of 0.29 right now. 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. FANG's industry had an average PEG ratio of 0.33 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 229, putting it in the bottom 10% 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 Zacks.com.


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