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Diamondback Energy (FANG) Gains As Market Dips: What You Should Know
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Diamondback Energy (FANG - Free Report) closed the most recent trading day at $140.02, moving +0.81% from the previous trading session. This change outpaced the S&P 500's 0.68% loss on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 3.19%.
Coming into today, shares of the energy exploration and production company had gained 8.8% in the past month. In that same time, the Oils-Energy sector gained 1.28%, while the S&P 500 gained 3.58%.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be July 31, 2023. On that day, Diamondback Energy is projected to report earnings of $4.25 per share, which would represent a year-over-year decline of 39.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, down 28.37% from the year-ago period.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $17.54 per share and revenue of $8.02 billion. These results would represent year-over-year changes of -26.98% and -16.82%, respectively.
It is also important to note the recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 5.9% lower within the past month. Diamondback Energy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 7.92. For comparison, its industry has an average Forward P/E of 8.24, which means Diamondback Energy is trading at a discount to the group.
We can also see that FANG currently has a PEG ratio of 0.36. 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 0.39 based on yesterday's closing prices.
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 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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Diamondback Energy (FANG) Gains As Market Dips: What You Should Know
Diamondback Energy (FANG - Free Report) closed the most recent trading day at $140.02, moving +0.81% from the previous trading session. This change outpaced the S&P 500's 0.68% loss on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 3.19%.
Coming into today, shares of the energy exploration and production company had gained 8.8% in the past month. In that same time, the Oils-Energy sector gained 1.28%, while the S&P 500 gained 3.58%.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be July 31, 2023. On that day, Diamondback Energy is projected to report earnings of $4.25 per share, which would represent a year-over-year decline of 39.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, down 28.37% from the year-ago period.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $17.54 per share and revenue of $8.02 billion. These results would represent year-over-year changes of -26.98% and -16.82%, respectively.
It is also important to note the recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 5.9% lower within the past month. Diamondback Energy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 7.92. For comparison, its industry has an average Forward P/E of 8.24, which means Diamondback Energy is trading at a discount to the group.
We can also see that FANG currently has a PEG ratio of 0.36. 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 0.39 based on yesterday's closing prices.
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 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.