In the latest close session, Diamondback Energy (FANG) was up +2.05% at $140.87. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.
Shares of the energy exploration and production company have appreciated by 1.29% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.8%, and the S&P 500's gain of 5.12%.
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The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. It is anticipated that the company will report an EPS of $2.72, marking a 39.82% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.41 billion, reflecting a 37.23% rise from the equivalent quarter last year.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $13.2 per share and revenue of $14.05 billion. These results would represent year-over-year changes of -20.34% and +26.94%, respectively.
It is also important to note the recent changes 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.23% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is presently being traded at a Forward P/E ratio of 10.46. This denotes a discount relative to the industry average Forward P/E of 10.49.
The Oil and Gas – Exploration and Production – United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
