Why The Market Dipped But Diamondback Energy (fang) Gained Today

Diamondback Energy (FANG) closed at $162.09 in the latest trading session, marking a +1.14% move from the prior day. This move outpaced the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Prior to today's trading, shares of the energy exploration and production company had lost 9.76% over the past month. This has lagged the Oils-Energy sector's loss of 3.14% and the S&P 500's gain of 2.6% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Diamondback Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on February 24, 2025. In that report, analysts expect Diamondback Energy to post earnings of $3.26 per share. This would mark a year-over-year decline of 31.22%. In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 52.61% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in 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 company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 7.21% higher within the past month. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Diamondback Energy is currently being traded at a Forward P/E ratio of 10.15. Its industry sports an average Forward P/E of 8.99, so one might conclude that Diamondback Energy is trading at a premium comparatively.

It's also important to note that FANG currently trades at a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 1.26 at the close of the market yesterday.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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