Is Diamondback Energy Stock a Good Investment?
Diamondback Energy Investment Advice | FANG |
- Examine Diamondback Energy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Diamondback Energy's leadership team and their track record. Good management can help Diamondback Energy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Exploration & Production space and any emerging trends that could impact Diamondback Energy's business and its evolving consumer preferences.
- Compare Diamondback Energy's performance and market position to its competitors. Analyze how Diamondback Energy is positioned in terms of product offerings, innovation, and market share.
- Check if Diamondback Energy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Diamondback Energy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Diamondback Energy stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Diamondback Energy is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Diamondback Energy Stock
Researching Diamondback Energy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 35.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.45. Some equities with similar Price to Book (P/B) outperform the market in the long run. Diamondback Energy has Price/Earnings To Growth (PEG) ratio of 1.2. The entity recorded earning per share (EPS) of 17.32. The firm last dividend was issued on the 14th of November 2024.
To determine if Diamondback Energy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Diamondback Energy's research are outlined below:
| Diamondback Energy generated a negative expected return over the last 90 days | |
| Diamondback Energy currently holds 6.8 B in liabilities with Debt to Equity (D/E) ratio of 0.38, which is about average as compared to similar companies. Diamondback Energy has a current ratio of 0.6, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Diamondback Energy's use of debt, we should always consider it together with its cash and equity. | |
| Diamondback Energy has a strong financial position based on the latest SEC filings | |
| About 62.0% of Diamondback Energy shares are owned by institutional investors | |
| On 21st of November 2024 Diamondback Energy paid $ 0.9 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Moran Wealth Management LLC Sells 3,564 Shares of Diamondback Energy, Inc. |
Diamondback Energy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Diamondback Energy. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Diamondback Energy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Diamondback Energy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Diamondback Energy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-08-05 | 2015-06-30 | 0.37 | 0.41 | 0.04 | 10 | ||
2013-08-06 | 2013-06-30 | 0.26 | 0.3 | 0.04 | 15 | ||
2013-05-07 | 2013-03-31 | 0.17 | 0.12 | -0.05 | 29 | ||
2013-02-25 | 2012-12-31 | 0.13 | 0.18 | 0.05 | 38 | ||
2016-05-03 | 2016-03-31 | -0.05 | 0.02 | 0.07 | 140 | ||
2015-11-03 | 2015-09-30 | 0.32 | 0.4 | 0.08 | 25 | ||
2016-08-02 | 2016-06-30 | 0.16 | 0.26 | 0.1 | 62 | ||
2020-08-03 | 2020-06-30 | 0.02 | 0.15 | 0.13 | 650 |
Know Diamondback Energy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Diamondback Energy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Diamondback Energy backward and forwards among themselves. Diamondback Energy's institutional investor refers to the entity that pools money to purchase Diamondback Energy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Nuveen Asset Management, Llc | 2024-06-30 | 3.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 3 M | Pacer Advisors, Inc. | 2024-06-30 | 2.5 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.4 M | Diamond Hill Capital Management Inc | 2024-09-30 | 2.2 M | Massachusetts Financial Services Company | 2024-09-30 | 2 M | Northern Trust Corp | 2024-09-30 | 1.9 M | Goldman Sachs Group Inc | 2024-06-30 | 1.6 M | Balyasny Asset Management Llc | 2024-09-30 | 1.5 M | Vanguard Group Inc | 2024-09-30 | 23.5 M | Blackrock Inc | 2024-06-30 | 14.9 M |
Diamondback Energy's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 54.1 B.Market Cap |
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Diamondback Energy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.11 | 0.11 | |
| Return On Capital Employed | 0.17 | 0.18 | |
| Return On Assets | 0.11 | 0.11 | |
| Return On Equity | 0.19 | 0.20 |
Determining Diamondback Energy's profitability involves analyzing its financial statements and using various financial metrics to determine if Diamondback Energy is a good buy. For example, gross profit margin measures Diamondback Energy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Diamondback Energy's profitability and make more informed investment decisions.
Evaluate Diamondback Energy's management efficiency
Diamondback Energy has return on total asset (ROA) of 0.062 % which means that it generated a profit of $0.062 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1227 %, meaning that it created $0.1227 on every $100 dollars invested by stockholders. Diamondback Energy's management efficiency ratios could be used to measure how well Diamondback Energy manages its routine affairs as well as how well it operates its assets and liabilities. The Diamondback Energy's current Return On Tangible Assets is estimated to increase to 0.11. The Diamondback Energy's current Return On Capital Employed is estimated to increase to 0.18. At this time, Diamondback Energy's Non Currrent Assets Other are most likely to increase significantly in the upcoming years. The Diamondback Energy's current Total Current Assets is estimated to increase to about 1.7 B, while Intangibles To Total Assets are projected to decrease to 0.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 96.83 | 101.68 | |
| Tangible Book Value Per Share | 96.83 | 101.68 | |
| Enterprise Value Over EBITDA | 5.61 | 5.33 | |
| Price Book Value Ratio | 1.68 | 2.35 | |
| Enterprise Value Multiple | 5.61 | 5.33 | |
| Price Fair Value | 1.68 | 2.35 | |
| Enterprise Value | 30.7 B | 32.3 B |
Leadership effectiveness at Diamondback Energy is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Dividend Yield 0.0447 | Forward Dividend Yield 0.0447 | Forward Dividend Rate 8.29 | Beta 1.875 |
Basic technical analysis of Diamondback Stock
As of the 25th of November, Diamondback Energy shows the Mean Deviation of 1.64, coefficient of variation of (10,309), and Standard Deviation of 2.16. Diamondback Energy technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Diamondback Energy information ratio, and the relationship between the coefficient of variation and value at risk to decide if Diamondback Energy is priced favorably, providing market reflects its regular price of 185.29 per share. Given that Diamondback Energy has information ratio of (0.07), we urge you to verify Diamondback Energy's prevailing market performance to make sure the company can sustain itself at a future point.Diamondback Energy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Diamondback Energy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Diamondback Energy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Diamondback Energy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Diamondback Energy's Outstanding Corporate Bonds
Diamondback Energy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Diamondback Energy uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Diamondback bonds can be classified according to their maturity, which is the date when Diamondback Energy has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| DIAMONDBACK ENERGY INC Corp BondUS25278XAM11 | View | |
| DIAMONDBACK ENERGY INC Corp BondUS25278XAN93 | View | |
| FANG 44 24 MAR 51 Corp BondUS25278XAQ25 | View | |
| DIAMONDBACK ENERGY INC Corp BondUS25278XAR08 | View | |
| FANG 625 15 MAR 33 Corp BondUS25278XAV10 | View | |
| FANG 625 15 MAR 53 Corp BondUS25278XAW92 | View |
Understand Diamondback Energy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Diamondback Energy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.001) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.64 | |||
| Coefficient Of Variation | (10,309) | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.68 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.37) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 9.6 | |||
| Value At Risk | (3.91) | |||
| Potential Upside | 3.0 | |||
| Skewness | (0.62) | |||
| Kurtosis | 0.7316 |
| Risk Adjusted Performance | (0.001) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.64 | |||
| Coefficient Of Variation | (10,309) | |||
| Standard Deviation | 2.16 | |||
| Variance | 4.68 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.37) | |||
| Treynor Ratio | (0.04) | |||
| Maximum Drawdown | 9.6 | |||
| Value At Risk | (3.91) | |||
| Potential Upside | 3.0 | |||
| Skewness | (0.62) | |||
| Kurtosis | 0.7316 |
Consider Diamondback Energy's intraday indicators
Diamondback Energy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Diamondback Energy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Diamondback Energy Corporate Filings
F4 | 18th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 10th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Diamondback Stock media impact
Far too much social signal, news, headlines, and media speculation about Diamondback Energy that are available to investors today. That information is available publicly through Diamondback media outlets and privately through word of mouth or via Diamondback internal channels. However, regardless of the origin, that massive amount of Diamondback data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Diamondback Energy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Diamondback Energy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Diamondback Energy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Diamondback Energy alpha.
Diamondback Energy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Diamondback Energy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Diamondback Energy Historical Investor Sentiment
Investor biases related to Diamondback Energy's public news can be used to forecast risks associated with an investment in Diamondback. The trend in average sentiment can be used to explain how an investor holding Diamondback can time the market purely based on public headlines and social activities around Diamondback Energy. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Diamondback Energy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Diamondback Energy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Diamondback Energy news discussions. The higher the estimate score, the more favorable the investor's outlook on Diamondback Energy.
When determining whether Diamondback Energy is a strong investment it is important to analyze Diamondback Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Diamondback Energy's future performance. For an informed investment choice regarding Diamondback Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diamondback Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more detail on how to invest in Diamondback Stock please use our How to Invest in Diamondback Energy guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diamondback Energy. If investors know Diamondback will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diamondback Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.37) | Dividend Share 8.29 | Earnings Share 17.32 | Revenue Per Share 49.46 | Quarterly Revenue Growth 0.087 |
The market value of Diamondback Energy is measured differently than its book value, which is the value of Diamondback that is recorded on the company's balance sheet. Investors also form their own opinion of Diamondback Energy's value that differs from its market value or its book value, called intrinsic value, which is Diamondback Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diamondback Energy's market value can be influenced by many factors that don't directly affect Diamondback Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Diamondback Energy's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Diamondback Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamondback Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.