In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $18.59, marking a -0.54% move from the previous day. This move was narrower than the S&P 500's daily loss of 4.34%. Elsewhere, the Dow lost 4.55%, while the tech-heavy Nasdaq lost 3.79%.
Prior to today's trading, shares of the energy exploration and production company had lost 76.19% over the past month. This has lagged the Oils-Energy sector's loss of 51.4% and the S&P 500's loss of 28.78% in that time.
FANG will be looking to display strength as it nears its next earnings release. In that report, analysts expect FANG to post earnings of $1.75 per share. This would mark year-over-year growth of 25.9%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 25.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.75 per share and revenue of $4.31 billion, which would represent changes of -2.6% and +8.76%, respectively, from the prior year.
Any recent changes to analyst estimates for FANG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 23.91% lower within the past month. FANG is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that FANG has a Forward P/E ratio of 2.77 right now. This represents a discount compared to its industry's average Forward P/E of 4.77.
Also, we should mention that FANG has a PEG ratio of 0.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.87 at yesterday's closing price.
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 161, putting it in the bottom 37% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.