In the latest trading session, Diamondback Energy (FANG) closed at $79.58, marking a +1.31% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%.
Prior to today's trading, shares of the energy exploration and production company had lost 15.19% over the past month. This has lagged the Oils-Energy sector's loss of 8.96% and the S&P 500's gain of 2.91% in that time.
Wall Street will be looking for positivity from FANG as it approaches its next earnings report date. This is expected to be August 2, 2021. On that day, FANG is projected to report earnings of $2.27 per share, which would represent year-over-year growth of 1413.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, up 219.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.53 per share and revenue of $5.16 billion. These totals would mark changes of +213.49% and +83.45%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for FANG. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 9.47% higher. FANG currently has a Zacks Rank of #3 (Hold).
Investors should also note FANG's current valuation metrics, including its Forward P/E ratio of 8.24. For comparison, its industry has an average Forward P/E of 9.5, which means FANG is trading at a discount to the group.
Meanwhile, FANG's PEG ratio is currently 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.47 based on yesterday's closing prices.
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 15, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
To read this article on Zacks.com click here.