Diamondback Energy (FANG) closed the most recent trading day at $178.37, moving -2.46% from the previous trading session. This change lagged the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 0.01%.
The energy exploration and production company's stock has climbed by 10.18% in the past month, exceeding the Oils-Energy sector's gain of 6.06% and the S&P 500's loss of 2.26%.
Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $2.27, reflecting a 50% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.34 billion, showing a 17.37% drop compared to the year-ago quarter.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $9.28 per share and revenue of $13.52 billion. These results would represent year-over-year changes of -30.59% and -10.04%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, there's been a 5.23% rise in the Zacks Consensus EPS estimate. Diamondback Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 19.71 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.53.
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 166, which puts it in the bottom 33% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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