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Why the Market Dipped But Diamondback Energy (FANG) Gained Today
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Diamondback Energy (FANG - Free Report) closed the latest trading day at $169.92, indicating a +0.86% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 1.34%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.62%.
The energy exploration and production company's stock has climbed by 8.42% in the past month, exceeding the Oils-Energy sector's gain of 0.46% and the S&P 500's loss of 1.57%.
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. The company's earnings per share (EPS) are projected to be $4.81, reflecting a 25.77% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, down 13.16% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.83 per share and revenue of $8.16 billion. These totals would mark changes of -25.77% and -15.38%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Diamondback Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.77% higher. Diamondback Energy is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 9.45 right now. For comparison, its industry has an average Forward P/E of 9.96, which means Diamondback Energy is trading at a discount to the group.
Investors should also note that FANG has a PEG ratio of 0.43 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.45 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 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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Why the Market Dipped But Diamondback Energy (FANG) Gained Today
Diamondback Energy (FANG - Free Report) closed the latest trading day at $169.92, indicating a +0.86% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 1.34%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.62%.
The energy exploration and production company's stock has climbed by 8.42% in the past month, exceeding the Oils-Energy sector's gain of 0.46% and the S&P 500's loss of 1.57%.
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. The company's earnings per share (EPS) are projected to be $4.81, reflecting a 25.77% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, down 13.16% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.83 per share and revenue of $8.16 billion. These totals would mark changes of -25.77% and -15.38%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Diamondback Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.77% higher. Diamondback Energy is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 9.45 right now. For comparison, its industry has an average Forward P/E of 9.96, which means Diamondback Energy is trading at a discount to the group.
Investors should also note that FANG has a PEG ratio of 0.43 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.45 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 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.