Diamondback Energy (FANG) Rises Higher Than Market: Key Facts
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In the latest trading session, Diamondback Energy (FANG) closed at $145.57, marking a +2.42% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%.
The energy exploration and production company's stock has dropped by 0.55% in the past month, falling short of the Oils-Energy sector's gain of 3% and the S&P 500's gain of 6.29%.
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The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 39.82% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.41 billion, indicating a 37.23% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.23 per share and a revenue of $14.05 billion, representing changes of -20.16% and +26.94%, respectively, from the prior year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.89% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 10.74. This denotes a premium relative to the industry's average Forward P/E of 10.64.
We can additionally observe that FANG currently boasts a PEG ratio of 1.29. 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. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 2.42 at the close of the market yesterday.