Diamondback Energy (FANG) closed at $162.01 in the latest trading session, marking a +0.22% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.03%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Shares of the energy exploration and production company witnessed a loss of 8.98% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 0.76% and the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. The company plans to announce its earnings on February 24, 2025. In that report, analysts expect Diamondback Energy to post earnings of $3.29 per share. This would mark a year-over-year decline of 30.59%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.4 billion, indicating a 52.72% increase compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Diamondback Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.37% lower. Diamondback Energy presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 10.49. This valuation marks a premium compared to its industry's average Forward P/E of 9.37.

Investors should also note that FANG has a PEG ratio of 1.26 right now. 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 industry currently had an average PEG ratio of 1.33 as of yesterday's close.

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 52, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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