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Diamondback Energy (FANG) closed the latest trading day at $155, indicating a +1.29% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 1.71%.
Coming into today, shares of the energy exploration and production company had lost 2.52% in the past month. In that same time, the Oils-Energy sector lost 1.46%, while the S&P 500 lost 7.03%.
The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company is predicted to post an EPS of $3.73, indicating a 17.11% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.6 billion, showing a 61.72% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.29 per share and revenue of $14.97 billion, indicating changes of -7.72% and +35.28%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 1.45% lower. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is presently being traded at a Forward P/E ratio of 10.01. For comparison, its industry has an average Forward P/E of 8.1, which means Diamondback Energy is trading at a premium to the group.
Meanwhile, FANG's PEG ratio is currently 1.2. 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. FANG's industry had an average PEG ratio of 1.2 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 56, which puts it in the top 23% of all 250+ industries.