Priming the Pump: What Are Analysts Saying About Diamondback Energy, Inc. (NASDAQ:FANG)?

Diamondback Energy, Inc. (NASDAQ:FANG) currently has an Average Broker Rating of 1.11. This number is based on the 27 sell-side firms polled by Zacks. The ABR rank within the industry stands at 134.   

Analysts on a consensus basis are expecting that the stock will reach $155.26 within the year.  The ABR is provided by Zacks which simplfies analyst ratings into an integer based number. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating. 

Research analysts study publicly traded companies and make recommendations on the securities of those companies. Most specialize in a particular industry or sector of the economy. They exert considerable influence in today’s marketplace. Analysts’ recommendations or reports can influence the price of a company’s stock—especially when the recommendations are widely disseminated through television appearances or through other electronic and print media. The mere mention of a company by a popular analyst can temporarily cause its stock to rise or fall—even when nothing about the company’s prospects or fundamentals has recently changed.

Analysts often use a variety of terms—buy, strong buy, near-term or long-term accumulate, near-term or long-term over-perform or under-perform, neutral, hold—to describe their recommendations. But the meanings of these terms can differ from firm to firm. Rather than make assumptions, investors should carefully read the definitions of all ratings used in each research report. They should also consider the firm’s disclosures regarding what percentage of all ratings fall into either “buy,” “hold/neutral,” and “sell” categories.

Investors will be trying to gauge which way stock market momentum will shift as we head into the close of the calendar year. Some may be of the mindset that the bears will be taking over shortly. Others may be super bullish and ready for the market to make a further run higher. Trying to predict which way the tide will shift is no easy task. Being prepared for any situation that arises is a god way to combat the uncertainty that always follows the market. Being prepared can help the investor make quick, tough decisions when the time comes. Many investors may have already figured out that holding onto losers for too long can be damaging for the portfolio. They may have also realized that holding onto winners too long can also have negative effects. Finding that perfect buy/sell balance can end up being the difference between a good portfolio and a great one.

Research analysts are predicting that Diamondback Energy, Inc. (NASDAQ:FANG) will report earnings of $1.77 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

Diamondback Energy, Inc. (NASDAQ:FANG) closed the last session at $107.28 and sees an average of 1723840.75 shares trade hands in each session. The 52-week low of the stock stands at $85.67 while the current level stands at 39.83% of the 52-week High-Low range. Looking further out we can see that the stock has moved 5.63% over the past 12 weeks and 15.73% year to date.

Most recently Diamondback Energy, Inc. (NASDAQ:FANG) posted quarterly earnings of $1.21 which compared to the sell-side estimates of 1.49. The stock’s 12-month trailing earnings per share stands at $6.11. Shares have moved $1.29 over the past month and more recently, $7.37 over the past week heading into the earnings announcement. There are 16 analyst projections that were taken into consideration from respected brokerage firms.

As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be looking to develop a stock market strategy with a bit less risk involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can help the investor gauge their risk tolerance in the markets.

26 analysts rate Diamondback Energy, Inc. a Buy or Strong Buy, which is 96.3% of all the analyst ratings.

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