Latest news with #DiamondbackEnergy
Yahoo
9 hours ago
- Business
- Yahoo
Why Diamondback Energy (FANG) Earns its Strong Buy Rating in 2025
Diamondback Energy, Inc. (NASDAQ:FANG) is included among the Best Strong Buy Dividend Stocks to Invest in Now. A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system. As a policy, the company plans to return half of its free cash flow to shareholders through a mix of base and variable dividends, along with share repurchases. The company still has $1.845 billion left under its $6 billion share repurchase program. By the end of the first quarter, Diamondback Energy, Inc. (NASDAQ:FANG) had bought back $829 million worth of its shares, roughly $2.80 per share. The company reported strong earnings in the first quarter of 2025, with revenues of $4.05 billion, up 81.7% from the same period last year. The revenue also beat analysts' estimates by $294.2 million. Its cash position also remained stable with an operating cash flow of $2.4 billion and free cash flow of $1.5 billion. Diamondback Energy, Inc. (NASDAQ:FANG) initiated its dividend policy in 2018 and has raised its payouts multiple times since then. The company currently offers a quarterly dividend of $1.00 per share and has a dividend yield of 3.44%, as of July 29. While we acknowledge the potential of FANG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Diamondback Energy (FANG) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Diamondback Energy (FANG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Zacks Consensus Estimate This energy exploration and production company is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of -41.8%. Revenues are expected to be $3.37 billion, up 35.9% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 6.83% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Diamondback? For Diamondback, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.28%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Diamondback will most likely beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Diamondback would post earnings of $4.09 per share when it actually produced earnings of $4.54, delivering a surprise of +11.00%. Over the last four quarters, the company has beaten consensus EPS estimates three times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Diamondback appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. An Industry Player's Expected Results SM Energy (SM), another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $1.23 for the quarter ended June 2025. This estimate points to a year-over-year change of -33.5%. Revenues for the quarter are expected to be $780.12 million, up 22.9% from the year-ago quarter. The consensus EPS estimate for SM Energy has been revised 0.7% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.64%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that SM Energy will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Raymond James Raised the PT on Diamondback Energy (FANG), Kept a Buy Rating
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the . On July 22, Raymond James analyst John Freeman raised the firm's price target on Diamondback Energy, Inc. (NASDAQ:FANG) from $204 to $221, while maintaining a Buy rating on the shares. The updated bullish sentiment comes as the company gets close to releasing its Q2 2025 results. It is set to release its results on August 5, 2025. Diamondback Energy, Inc. (NASDAQ:FANG) reduced the full year and Q2 guidance due to the commodity price volatility. It is expecting the second quarter oil production to be between the range of 485 – 500 MBO/d. Whereas the full year production is expected between 480 – 495 MBO/d. A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system. The analyst noted that while the macroeconomic uncertainty remains, the oil prices have recovered for the time being. Therefore, Raymond James sees minimal activity changes from the management. Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that explores and develops onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. While we acknowledge the potential of FANG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
23-07-2025
- Business
- Globe and Mail
ExxonMobil's Core Upstream Growth Engines: Permian and Guyana
Exxon Mobil Corporation XOM has a strong portfolio of upstream assets, centered around oil-rich prolific resources in the Permian Basin and offshore Guyana. Production costs in those assets are low. Therefore, the leading integrated energy major can weather a challenging business environment when oil and gas prices turn unfavorable. With a strong focus on strengthening its presence in the Permian, ExxonMobil completed the acquisition of Pioneer Natural Resources Company on May 3, 2024. With 1.4 million net acres of the combined company in the Delaware and Midland basins, and an estimated 16 billion barrels of oil equivalent resources, ExxonMobil has greatly transformed its upstream portfolio. Similar to its operations in the Permian, ExxonMobil boasts a robust project pipeline in offshore Guyana resources. Despite this operational strength and resource depth, near-term challenges remain. ExxonMobil recently disclosed in an 8-K filing that it expects earnings for the second quarter of 2025 to be hurt sequentially by lower oil and natural gas prices. With exploration and production activities contributing mostly to XOM's bottom line, a weaker commodity pricing environment in the June quarter of this year is a concern, even as the company continues to deliver long-term growth from its world-class assets. CVX & FANG Also Have a Strong Position in Permian Both Chevron CVX and DiamondbackEnergyFANG are leading energy players having a strong presence in the Permian Basin. In the Permian, the most prolific basin in the United States, Chevron is among the largest producers of oil and gas. Production contributions from the Permian have been aiding CVX's bottom line. Diamondback is a pure-play Permian producer. Hence, FANG is well-positioned to gain from producing at a low-cost asset. FANG has been increasing its total Permian acres over time. XOM's Price Performance, Valuation & Estimates Shares of XOM have declined a marginal 0.5% over the past year against the nominal 0.7% gain of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.73X. This is above the broader industry average of 4.27X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for XOM's 2025 earnings has been revised upward over the past seven days. Image Source: Zacks Investment Research XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-07-2025
- Business
- Yahoo
Diamondback Energy (FANG) Stock Declines While Market Improves: Some Information for Investors
Diamondback Energy (FANG) closed at $139.84 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%. Prior to today's trading, shares of the energy exploration and production company had lost 5.03% lagged the Oils-Energy sector's loss of 0.85% and the S&P 500's gain of 5.35%. 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 August 4, 2025. In that report, analysts expect Diamondback Energy to post earnings of $2.63 per share. This would mark a year-over-year decline of 41.81%. At the same time, our most recent consensus estimate is projecting a revenue of $3.39 billion, reflecting a 36.67% rise from the equivalent quarter last year. FANG's full-year Zacks Consensus Estimates are calling for earnings of $13.25 per share and revenue of $14.07 billion. These results would represent year-over-year changes of -20.04% and +27.17%, respectively. Investors should also note any recent changes to analyst estimates 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 business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now. Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 10.67 right now. Its industry sports an average Forward P/E of 10.74, so one might conclude that Diamondback Energy is trading at a discount comparatively. The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 37% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
