In This Article:
In the latest market close, Diamondback Energy (FANG) reached $146.55, with a +1.31% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.49%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq appreciated by 1.22%.
The the stock of energy exploration and production company has fallen by 10.72% in the past month, lagging the Oils-Energy sector's loss of 6.96% and the S&P 500's loss of 8.15%.
The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. On that day, Diamondback Energy is projected to report earnings of $3.83 per share, which would represent a year-over-year decline of 14.89%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.6 billion, indicating a 61.67% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.71 per share and a revenue of $15.01 billion, signifying shifts of -5.19% and +35.63%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Diamondback Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 past month, the Zacks Consensus EPS estimate has moved 1.96% higher. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Diamondback Energy currently has a Forward P/E ratio of 9.21. This signifies a premium in comparison to the average Forward P/E of 8.1 for its industry.
Meanwhile, FANG's PEG ratio is currently 1.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 1.1.