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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 $32.10, marking a +1.61% move from the previous day. This move lagged the S&P 500's daily gain of 7.03%. Elsewhere, the Dow gained 7.73%, while the tech-heavy Nasdaq added 7.33%.
Coming into today, shares of the energy exploration and production company had lost 45.73% in the past month. In that same time, the Oils-Energy sector lost 29.31%, while the S&P 500 lost 16.9%.
Investors will be hoping for strength from FANG as it approaches its next earnings release. The company is expected to report EPS of $1.48, up 6.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $985.79 million, up 14.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.05 per share and revenue of $3.28 billion, which would represent changes of -55.99% and -17.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FANG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 63.74% lower. FANG is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, FANG is holding a Forward P/E ratio of 10.37. Its industry sports an average Forward P/E of 6.91, so we one might conclude that FANG is trading at a premium comparatively.
Also, we should mention that FANG has a PEG ratio of 0.47. 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 industry currently had an average PEG ratio of 1.23 as of yesterday's close.
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 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Diamondback Energy (FANG) Gains But Lags Market: What You Should Know
In the latest trading session, Diamondback Energy (FANG - Free Report) closed at $32.10, marking a +1.61% move from the previous day. This move lagged the S&P 500's daily gain of 7.03%. Elsewhere, the Dow gained 7.73%, while the tech-heavy Nasdaq added 7.33%.
Coming into today, shares of the energy exploration and production company had lost 45.73% in the past month. In that same time, the Oils-Energy sector lost 29.31%, while the S&P 500 lost 16.9%.
Investors will be hoping for strength from FANG as it approaches its next earnings release. The company is expected to report EPS of $1.48, up 6.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $985.79 million, up 14.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.05 per share and revenue of $3.28 billion, which would represent changes of -55.99% and -17.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FANG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 63.74% lower. FANG is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, FANG is holding a Forward P/E ratio of 10.37. Its industry sports an average Forward P/E of 6.91, so we one might conclude that FANG is trading at a premium comparatively.
Also, we should mention that FANG has a PEG ratio of 0.47. 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 industry currently had an average PEG ratio of 1.23 as of yesterday's close.
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 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.