Diamondback Energy (FANG) ended the recent trading session at $142.70, demonstrating a -1.61% swing from the preceding day's closing price. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.

The energy exploration and production company's stock has dropped by 12.78% in the past month, falling short of the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13%.

Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. In that report, analysts expect Diamondback Energy to post earnings of $3.78 per share. This would mark a year-over-year decline of 16%. At the same time, our most recent consensus estimate is projecting a revenue of $3.58 billion, reflecting a 60.71% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.57 per share and a revenue of $15.03 billion, signifying shifts of -6.04% and +35.84%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Diamondback Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.97% higher. Diamondback Energy currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Diamondback Energy is currently being traded at a Forward P/E ratio of 9.31. For comparison, its industry has an average Forward P/E of 7.97, which means Diamondback Energy is trading at a premium to the group.

It is also worth noting that FANG currently has a PEG ratio of 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 1.12 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 10% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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