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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 $139.51, moving +1.73% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.74%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Prior to today's trading, shares of the energy exploration and production company had gained 5.44% over the past month. This has outpaced the Oils-Energy sector's gain of 1% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be July 31, 2023. In that report, analysts expect Diamondback Energy to post earnings of $4.44 per share. This would mark a year-over-year decline of 37.2%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 27.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.38 per share and revenue of $8.13 billion, which would represent changes of -23.48% and -15.69%, respectively, from the prior year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 4.03% lower. 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 7.46. This represents a discount compared to its industry's average Forward P/E of 7.9.
It is also worth noting that FANG currently has a PEG ratio of 0.34. 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 was holding an average PEG ratio of 0.4 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 225, which puts it in the bottom 11% 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.
To follow FANG in the coming trading sessions, be sure to utilize 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 $139.51, moving +1.73% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.74%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 11.47%.
Prior to today's trading, shares of the energy exploration and production company had gained 5.44% over the past month. This has outpaced the Oils-Energy sector's gain of 1% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be July 31, 2023. In that report, analysts expect Diamondback Energy to post earnings of $4.44 per share. This would mark a year-over-year decline of 37.2%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, down 27.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.38 per share and revenue of $8.13 billion, which would represent changes of -23.48% and -15.69%, respectively, from the prior year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 4.03% lower. 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 7.46. This represents a discount compared to its industry's average Forward P/E of 7.9.
It is also worth noting that FANG currently has a PEG ratio of 0.34. 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 was holding an average PEG ratio of 0.4 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 225, which puts it in the bottom 11% 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.
To follow FANG in the coming trading sessions, be sure to utilize Zacks.com.