Diamondback Energy (FANG) closed the latest trading day at $135.54, indicating a -0.73% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.67%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 2.5%.
The the stock of energy exploration and production company has fallen by 15.51% in the past month, lagging the Oils-Energy sector's loss of 10.69% and the S&P 500's loss of 6.57%.
The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company's earnings report is expected on May 5, 2025. In that report, analysts expect Diamondback Energy to post earnings of $3.97 per share. This would mark a year-over-year decline of 11.78%. Our most recent consensus estimate is calling for quarterly revenue of $3.7 billion, up 66.26% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.11 per share and revenue of $14.56 billion, which would represent changes of -14.85% and +31.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.45% decrease. Diamondback Energy is currently a Zacks Rank #3 (Hold).
With respect to valuation, Diamondback Energy is currently being traded at a Forward P/E ratio of 9.68. This indicates a premium in contrast to its industry's Forward P/E of 7.67.
Investors should also note that FANG has a PEG ratio of 1.16 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 0.92.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 192, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Diamondback Energy, Inc. (FANG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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