In the latest close session, Diamondback Energy (FANG) was down 2% at $194.24. The stock fell short of the S&P 500, which registered a loss of 0.26% for the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.
Shares of the energy exploration and production company have appreciated by 1.04% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.73%, and the S&P 500's gain of 0.23%.
Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. On that day, Diamondback Energy is projected to report earnings of $5.6 per share, which would represent year-over-year growth of 109.74%. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, up 28.81% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.65 per share and a revenue of $17.99 billion, representing changes of +46.97% and +19.75%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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 business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.06% increase. 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 10.09. This expresses a premium compared to the average Forward P/E of 9.94 of its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 91, putting it in the top 38% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).