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Diamondback Energy (FANG) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Diamondback Energy (FANG - Free Report) reached $178.12, with a -0.92% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.31%.

Prior to today's trading, shares of the energy exploration and production company had lost 5.26% over the past month. This has lagged the Oils-Energy sector's loss of 2.45% and the S&P 500's gain of 1.57% in that time.

The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. On that day, Diamondback Energy is projected to report earnings of $4.68 per share, which would represent a year-over-year decline of 14.75%. Alongside, our most recent consensus estimate is anticipating revenue of $2.33 billion, indicating a 0.59% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.14 per share and a revenue of $9.8 billion, signifying shifts of +6.27% and +16.52%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Diamondback Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Diamondback Energy presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Diamondback Energy is at present trading with a Forward P/E ratio of 9.39. This indicates a discount in contrast to its industry's Forward P/E of 9.95.

It's also important to note that FANG currently trades at a PEG ratio of 1.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 1.24.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 14% of all industries, numbering over 250.

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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