Diamondback Energy (FANG) closed the most recent trading day at $151.25, moving +1.8% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.
Shares of the energy exploration and production company have depreciated by 4.86% over the course of the past month, underperforming the Oils-Energy sector's loss of 1.02%, and the S&P 500's gain of 0.94%.
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 $2.49, indicating a 31.59% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.38 billion, down 9.04% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.98 per share and a revenue of $14.51 billion, demonstrating changes of -21.67% and +31.12%, respectively, from the preceding year.
Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Diamondback Energy is at present trading with a Forward P/E ratio of 11.45. For comparison, its industry has an average Forward P/E of 10.31, which means Diamondback Energy is trading at a premium to the group.
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 181, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diamondback Energy, Inc. (FANG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
