Diamondback Energy (FANG) closed the most recent trading day at $143.19, moving +1.88% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
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Heading into today, shares of the energy exploration and production company had gained 3.41% over the past month, outpacing the Oils-Energy sector’s loss of 2.04% and the S&P 500’s gain of 3.13% in that time.
Investors will be hoping for strength from Diamondback Energy as it approaches its next earnings release, which is expected to be May 1, 2023. In that report, analysts expect Diamondback Energy to post earnings of $4.76 per share. This would mark a year-over-year decline of 8.46%. Meanwhile, our latest consensus estimate is calling for revenue of $2.08 billion, down 13.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.81 per share and revenue of $8.78 billion. These totals would mark changes of -13.36% and -8.94%, respectively, from last year.
Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 6.41% lower. Diamondback Energy is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Diamondback Energy currently has a Forward P/E ratio of 6.75. This valuation marks a premium compared to its industry’s average Forward P/E of 6.6.
Also, we should mention that FANG has a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. FANG’s industry had an average PEG ratio of 0.35 as of yesterday’s close.
The Oil and Gas – Exploration and Production – United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.