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In the latest trading session, Diamondback Energy (FANG) closed at $128.64, marking a +0.97% move from the previous day. This move outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the energy exploration and production company had gained 17.19% over the past month, outpacing the Oils-Energy sector's gain of 10.99% and the S&P 500's loss of 7.87% in that time.
Diamondback Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $3.41, up 315.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, up 118.68% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 4.23% higher within the past month. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 7.02. Its industry sports an average Forward P/E of 5.6, so we one might conclude that Diamondback Energy is trading at a premium comparatively.
It is also worth noting that FANG currently has a PEG ratio of 0.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.27 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 63, which puts it in the top 25% of all 250+ industries.