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Diamondback Energy (FANG) Stock Dips While Market Gains: Key Facts

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In the latest close session, Diamondback Energy (FANG - Free Report) was down 3.51% at $146.99. This change lagged the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.

The energy exploration and production company's stock has dropped by 3.95% in the past month, falling short of the Oils-Energy sector's gain of 1.8% and the S&P 500's gain of 0.55%.

The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.49, reflecting a 31.59% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.38 billion, reflecting a 9.04% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.98 per share and revenue of $14.51 billion, indicating changes of -21.67% and 0%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Diamondback Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 2.55% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 14.48. Its industry sports an average Forward P/E of 10.57, so one might conclude that Diamondback Energy is trading at a premium comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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