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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know
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In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $140.34, marking a +0.83% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the energy exploration and production company had gained 11.74% over the past month, outpacing the Oils-Energy sector's gain of 5.27% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be May 2, 2022. On that day, Diamondback Energy is projected to report earnings of $4.84 per share, which would represent year-over-year growth of 110.43%. Our most recent consensus estimate is calling for quarterly revenue of $1.9 billion, up 60.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.47 per share and revenue of $8.2 billion. These totals would mark changes of +96.59% and +20.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 12.8% higher. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 6.19 right now. For comparison, its industry has an average Forward P/E of 6.39, which means Diamondback Energy is trading at a discount to the group.
It is also worth noting that FANG currently has a PEG ratio of 0.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.28 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 16, putting it in the top 7% 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.
To follow FANG in the coming trading sessions, be sure to utilize Zacks.com.
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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know
In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $140.34, marking a +0.83% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the energy exploration and production company had gained 11.74% over the past month, outpacing the Oils-Energy sector's gain of 5.27% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be May 2, 2022. On that day, Diamondback Energy is projected to report earnings of $4.84 per share, which would represent year-over-year growth of 110.43%. Our most recent consensus estimate is calling for quarterly revenue of $1.9 billion, up 60.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.47 per share and revenue of $8.2 billion. These totals would mark changes of +96.59% and +20.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 12.8% higher. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 6.19 right now. For comparison, its industry has an average Forward P/E of 6.39, which means Diamondback Energy is trading at a discount to the group.
It is also worth noting that FANG currently has a PEG ratio of 0.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.28 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 16, putting it in the top 7% 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.
To follow FANG in the coming trading sessions, be sure to utilize Zacks.com.