In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $89.54, marking a -1.32% move from the previous day. This change lagged the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.34%.
Coming into today, shares of the energy exploration and production company had gained 3.73% in the past month. In that same time, the Oils-Energy sector gained 2.55%, while the S&P 500 gained 4.73%.
FANG will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2020. On that day, FANG is projected to report earnings of $1.81 per share, which would represent year-over-year growth of 49.59%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 71.56% from the prior-year quarter.
Any recent changes to analyst estimates for FANG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.44% higher. FANG is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, FANG is holding a Forward P/E ratio of 9.91. Its industry sports an average Forward P/E of 10.15, so we one might conclude that FANG is trading at a discount comparatively.
Also, we should mention that FANG has a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FANG's industry had an average PEG ratio of 0.94 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.