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Diamondback Energy (FANG) Surpasses Market Returns: Some Facts Worth Knowing

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Diamondback Energy (FANG - Free Report) ended the recent trading session at $139.64, demonstrating a +2.46% change from the preceding day's closing price. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow saw a downswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.03%.

Prior to today's trading, shares of the energy exploration and production company had lost 1.59% lagged the Oils-Energy sector's gain of 1.33% and the S&P 500's gain of 2.09%.

The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.79, reflecting a 17.46% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.33 billion, up 25.79% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.81 per share and a revenue of $14.02 billion, signifying shifts of -22.69% and +26.7%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

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 shifted 4.34% downward. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Diamondback Energy is holding a Forward P/E ratio of 10.64. This signifies a premium in comparison to the average Forward P/E of 10.52 for its industry.

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 157, which puts it in the bottom 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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