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Why Diamondback Energy (FANG) Outpaced the Stock Market Today

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The most recent trading session ended with Diamondback Energy (FANG - Free Report) standing at $193.97, reflecting a +1.93% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.35%.

Shares of the energy exploration and production company have depreciated by 5.88% over the course of the past month, underperforming the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 3.25%.

The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company is expected to report EPS of $4.80, up 30.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.27 billion, up 18.17% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.10 per share and revenue of $9.25 billion. These totals would mark changes of +6.05% and +10%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.82% higher within the past month. Diamondback Energy currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Diamondback Energy is currently exchanging hands at a Forward P/E ratio of 9.96. This valuation marks a premium compared to its industry's average Forward P/E of 9.28.

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 145, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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