Why Diamondback Energy (FANG) Could Be Positioned for a Surge

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Diamondback Energy, Inc . FANG is an independent oil and natural gas company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on FANG's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Diamondback Energy could be a solid choice for investors.

Current Quarter Estimates for FANG

In the past 30 days, 8 estimates have gone higher for Diamondback Energy while 1 has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 30 cents a share 30 days ago, to 34 cents today, a move of 13.3%.

Current Year Estimates for FANG

Meanwhile, Diamondback Energy's current year figures are also looking quite promising, with 10 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $1.04 per share 30 days ago to $1.14 per share today, an increase of 9.6%.

DIAMONDBACK EGY Price and Consensus


Bottom Line

The stock has also started to move higher lately, adding 12.5% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 (Buy) stock to profit in the near future. You can see  the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks

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