In the latest trading session, Diamondback Energy (FANG) closed at $142.18, marking a +2.41% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.55%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.95%.
The energy exploration and production company's stock has dropped by 4.43% in the past month, falling short of the Oils-Energy sector's gain of 1.1% and the S&P 500's gain of 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Diamondback Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.77, reflecting a 18.05% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.32 billion, reflecting a 25.61% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.63 per share and revenue of $14.01 billion, indicating changes of -23.78% and +26.65%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates 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 business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.58% decrease. Diamondback Energy currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Diamondback Energy is presently trading at a Forward P/E ratio of 10.99. This indicates a premium in contrast to its industry's Forward P/E of 10.51.
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 199, which puts it in the bottom 20% 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.
