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Why Diamondback Energy (FANG) Dipped More Than Broader Market Today
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The latest trading session saw Diamondback Energy (FANG - Free Report) ending at $149.62, denoting a -0.4% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
Heading into today, shares of the energy exploration and production company had lost 3.67% over the past month, lagging the Oils-Energy sector's loss of 2.12% and the S&P 500's gain of 4.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Diamondback Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on February 20, 2024. It is anticipated that the company will report an EPS of $4.79, marking a 9.45% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.17 billion, indicating a 7.08% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.81% lower. Diamondback Energy currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 8.13. This denotes a premium relative to the industry's average Forward P/E of 8.06.
One should further note that FANG currently holds a PEG ratio of 0.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.64 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 248, positioning it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Diamondback Energy (FANG) Dipped More Than Broader Market Today
The latest trading session saw Diamondback Energy (FANG - Free Report) ending at $149.62, denoting a -0.4% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
Heading into today, shares of the energy exploration and production company had lost 3.67% over the past month, lagging the Oils-Energy sector's loss of 2.12% and the S&P 500's gain of 4.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Diamondback Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on February 20, 2024. It is anticipated that the company will report an EPS of $4.79, marking a 9.45% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.17 billion, indicating a 7.08% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.81% lower. Diamondback Energy currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 8.13. This denotes a premium relative to the industry's average Forward P/E of 8.06.
One should further note that FANG currently holds a PEG ratio of 0.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.64 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 248, positioning it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.