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Why the Market Dipped But Diamondback Energy (FANG) Gained Today

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The latest trading session saw Diamondback Energy (FANG - Free Report) ending at $170.63, denoting a +1.05% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a rise of 0.33%, and the technology-dominated Nasdaq saw a decrease of 0.39%.

The the stock of energy exploration and production company has fallen by 14.19% in the past month, lagging the Oils-Energy sector's loss of 4.69% and the S&P 500's gain of 2.43%.

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 November 4, 2024. The company's earnings per share (EPS) are projected to be $4.62, reflecting a 15.85% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 0.59% fall from the equivalent quarter last year.

FANG's full-year Zacks Consensus Estimates are calling for earnings of $19.04 per share and revenue of $9.8 billion. These results would represent year-over-year changes of +5.72% and +16.52%, respectively.

Investors should also note any recent changes to analyst estimates for Diamondback Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.59% lower. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).

In the context of valuation, Diamondback Energy is at present trading with a Forward P/E ratio of 8.87. This denotes a discount relative to the industry's average Forward P/E of 9.63.

We can also see that FANG currently has a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 13% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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