Back to top

Image: Bigstock

Diamondback Energy (FANG) Advances But Underperforms Market: Key Facts

Read MoreHide Full Article

The most recent trading session ended with Diamondback Energy (FANG - Free Report) standing at $167.41, reflecting a +0.5% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 1.2%.

Coming into today, shares of the energy exploration and production company had gained 6.95% in the past month. In that same time, the Oils-Energy sector lost 0.77%, while the S&P 500 lost 3%.

Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. The company plans to announce its earnings on November 6, 2023. In that report, analysts expect Diamondback Energy to post earnings of $4.71 per share. This would mark a year-over-year decline of 27.31%. Meanwhile, our latest consensus estimate is calling for revenue of $2.11 billion, down 13.46% from the prior-year quarter.

FANG's full-year Zacks Consensus Estimates are calling for earnings of $17.49 per share and revenue of $8.15 billion. These results would represent year-over-year changes of -27.19% and -15.45%, respectively.

It is also important to note the recent changes to analyst estimates for Diamondback Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.01% higher. Diamondback Energy is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 9.52 right now. This represents a discount compared to its industry's average Forward P/E of 10.12.

It's also important to note that FANG currently trades at a PEG ratio of 0.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 0.52.

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 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Diamondback Energy, Inc. (FANG) - free report >>

Published in