In the latest trading session, Diamondback Energy (FANG) closed at $151.03, marking a -2.5% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.94%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 1.52%.
Prior to today's trading, shares of the energy exploration and production company had gained 9.76% outpaced the Oils-Energy sector's gain of 4.54% and the S&P 500's gain of 1.67%.
The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company's upcoming EPS is projected at $2.72, signifying a 39.82% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.41 billion, indicating a 37.23% growth compared to the corresponding quarter of the prior year.
FANG's full-year Zacks Consensus Estimates are calling for earnings of $13.2 per share and revenue of $14.05 billion. These results would represent year-over-year changes of -20.34% and +26.94%, respectively.
Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% decrease. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 11.74. This denotes a discount relative to the industry average Forward P/E of 12.14.
One should further note that FANG currently holds a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 2.62 at yesterday's closing price.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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