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Diamondback Energy (FANG) ended the recent trading session at $172.42, demonstrating a +1.64% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq depreciated by 1.89%.
The the stock of energy exploration and production company has risen by 1.51% in the past month, leading the Oils-Energy sector's loss of 11.62% and the S&P 500's loss of 1.7%.
Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. The company is predicted to post an EPS of $3.37, indicating a 28.9% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.4 billion, showing a 52.66% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 4.47% fall in the Zacks Consensus EPS estimate. 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 10.76. Its industry sports an average Forward P/E of 9.89, so one might conclude that Diamondback Energy is trading at a premium comparatively.
Also, we should mention that FANG has a PEG ratio of 1.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 1.2 at yesterday's closing price.
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 150, positioning it in the bottom 41% of all 250+ industries.