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Diamondback Energy (FANG) Outpaces Stock Market Gains: What You Should Know
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Diamondback Energy (FANG - Free Report) closed the most recent trading day at $143.49, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.
Coming into today, shares of the energy exploration and production company had gained 12.49% in the past month. In that same time, the Oils-Energy sector gained 5.13%, while the S&P 500 gained 3.31%.
Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2023. The company is expected to report EPS of $4.45, down 14.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 17.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.60 per share and revenue of $8.66 billion. These totals would mark changes of -14.24% and -10.18%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest 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. 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.
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 6.87% lower. 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 6.85. This represents a premium compared to its industry's average Forward P/E of 6.78.
Investors should also note that FANG has a PEG ratio of 0.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.45 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 232, which puts it in the bottom 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Diamondback Energy (FANG) Outpaces Stock Market Gains: What You Should Know
Diamondback Energy (FANG - Free Report) closed the most recent trading day at $143.49, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.
Coming into today, shares of the energy exploration and production company had gained 12.49% in the past month. In that same time, the Oils-Energy sector gained 5.13%, while the S&P 500 gained 3.31%.
Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2023. The company is expected to report EPS of $4.45, down 14.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 17.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.60 per share and revenue of $8.66 billion. These totals would mark changes of -14.24% and -10.18%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest 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. 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.
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 6.87% lower. 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 6.85. This represents a premium compared to its industry's average Forward P/E of 6.78.
Investors should also note that FANG has a PEG ratio of 0.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.45 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 232, which puts it in the bottom 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.