The most recent trading session ended with Diamondback Energy (FANG) standing at $194.96, reflecting a +0.46% shift from the previouse trading day’s closing. This change lagged the S&P 500’s 0.61% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 0.33%.
Heading into today, shares of the energy exploration and production company had gained 13.58% over the past month, outpacing the Oils-Energy sector’s loss of 2.26% and the S&P 500’s gain of 5.36% in that time.
The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. The company is slated to reveal its earnings on November 4, 2024. On that day, Diamondback Energy is projected to report earnings of $4.59 per share, which would represent a year-over-year decline of 16.39%. Simultaneously, our latest consensus estimate expects the revenue to be $2.41 billion, showing a 3.16% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.18 per share and a revenue of $10.15 billion, signifying shifts of +6.5% and +20.67%, respectively, from the last 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, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Diamondback Energy currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Diamondback Energy is currently exchanging hands at a Forward P/E ratio of 10.12. This expresses no noticeable deviation compared to the average Forward P/E of 10.12 of its industry.
Investors should also note that FANG has a PEG ratio of 1.21 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas – Exploration and Production – United States industry held an average PEG ratio of 1.35.
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 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.