Diamondback Energy (FANG) Stock Sinks As Market Gains: What You Should Know
Diamondback Energy (FANG) closed at $91.33 in the latest trading session, marking a -0.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%.
Prior to today's trading, shares of the energy exploration and production company had gained 18.37% over the past month. This has outpaced the Oils-Energy sector's gain of 3.75% and the S&P 500's gain of 1.75% 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 $2.15 per share. This would mark year-over-year growth of 1333.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 211.04% from the year-ago period.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $8.70 per share and revenue of $4.96 billion. These results would represent year-over-year changes of +186.18% and +76.37%, respectively.
It is also important to note the recent changes to analyst estimates for FANG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.19% higher. FANG is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note FANG's current valuation metrics, including its Forward P/E ratio of 10.51. This represents a discount compared to its industry's average Forward P/E of 10.86.
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 97, which puts it in the top 39% 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.
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