Diamondback Energy’s Stock Performance: A Mixed Review Amidst Market Shifts
Diamondback Energy, Inc. (FANG), based in Midland, Texas, operates as an independent oil and gas company. It focuses on acquiring, developing, exploring, and exploiting unconventional onshore oil and natural gas reserves. With a market capitalization of $53.1 billion, the company manages midstream infrastructure assets in both the Midland Basin and the Delaware Basin of the Permian Basin.
Yearly Performance Compared to Major Indices
In the past year, Diamondback’s stock has not kept pace with broader market trends. Over the last 52 weeks, FANG rose by 15.4%, which is notably lower than the S&P 500 Index’s ($SPX) impressive 31.1% gain. As for 2024, FANG has increased by 16.2%, trailing behind the S&P 500’s year-to-date growth of 24.1%.
FANG vs. Industry Peers
When focusing on industry benchmarks, FANG outperformed the iShares U.S. Oil & Gas Exploration & Production ETF (IEO), which recorded a 5.2% increase over the past year and a 6.3% rise year-to-date.
Latest Earnings Report Insights
The company disclosed its Q3 earnings on November 4, leading to a 4.6% rise in its stock during the next trading session. Although Diamondback’s adjusted earnings per share (EPS) of $3.38 fell short of analyst predictions, its revenue of $2.7 billion exceeded expectations.
Future Earnings Projections and Analyst Sentiments
Looking ahead, analysts forecast a 9.1% decline in EPS for the fiscal year ending in December, predicting a figure of $16.37. FANG’s earnings history shows a mixed bag, with the company exceeding consensus estimates in three of the past four quarters while failing to meet expectations once.
Reviews from analysts covering FANG stock reveal a consensus rating of “Strong Buy” with 19 “Strong Buy” ratings, three “Moderate Buy” ratings, and three “Holds”. This outlook is slightly more favorable than two months ago when 18 analysts recommended a “Strong Buy”.
Adjustments to Price Targets
On November 19, Raymond James Financial, Inc. (RJF) adjusted its price target for Diamondback Energy from $232 to $237, while keeping a “Strong Buy” rating in place. The firm highlighted that the company had previously disclosed details about its production and capital expenditures (capex) but also made a significant acreage trade that bolstered its position in the Midland Basin while offloading some legacy PDP-heavy holdings in the Delaware. Furthermore, Raymond James raised its 2025 production expectations by 10 mboe/d due to increased NGL and gas volumes and decreased the 2025 capex forecast to $4 billion from $4.25 billion.
Currently, the average price target for FANG stands at $218.72, suggesting a potential upside of 41.6% from present price levels. Notably, the highest price target in the market is $255, indicating a possible increase of 21.4%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
