In the latest close session, Diamondback Energy (FANG - Free Report) was up +1.22% at $205.49. The stock's performance was ahead of the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.
The stock of energy exploration and production company has risen by 10.65% in the past month, leading the Oils-Energy sector's gain of 5.23% and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. The company is slated to reveal its earnings on August 3, 2026. The company is expected to report EPS of $6.08, up 127.72% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.82 billion, indicating a 31.08% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.9 per share and revenue of $18.37 billion, which would represent changes of +41.36% and +22.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Diamondback Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.72% lower. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Diamondback Energy is presently being traded at a Forward P/E ratio of 10.74. This signifies a premium in comparison to the average Forward P/E of 10.42 for its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Diamondback Energy, Inc. (NASDAQ:FANG – Get Free Report) has been assigned an average recommendation of “Buy” from the twenty-five analysts that are currently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation, seventeen have given a buy recommendation and four have issued a strong buy recommendation on the company. The average 12 month price target among analysts that have covered the stock in the last year is $218.6842.
A number of equities research analysts have commented on the stock. Truist Financial dropped their price objective on shares of Diamondback Energy from $242.00 to $220.00 and set a “buy” rating on the stock in a research report on Thursday, July 16th. Weiss Ratings cut shares of Diamondback Energy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, July 16th. UBS Group lowered their target price on shares of Diamondback Energy from $246.00 to $243.00 and set a “buy” rating for the company in a research note on Tuesday. Barclays increased their target price on Diamondback Energy from $225.00 to $232.00 and gave the company an “overweight” rating in a report on Tuesday, May 26th. Finally, Raymond James Financial restated a “strong-buy” rating and issued a $249.00 price target on shares of Diamondback Energy in a research note on Wednesday, June 10th.
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Insiders Place Their Bets In other news, Director Mark Lawrence Plaumann sold 500 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $196.50, for a total transaction of $98,250.00. Following the sale, the director owned 13,437 shares of the company’s stock, valued at approximately $2,640,370.50. This trade represents a 3.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Charles Alvin Meloy sold 83,334 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $187.12, for a total value of $15,593,458.08. Following the sale, the director owned 851,530 shares of the company’s stock, valued at approximately $159,338,293.60. The trade was a 8.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 113,691 shares of company stock worth $21,622,752 over the last 90 days. Insiders own 0.64% of the company’s stock.
Institutional Trading of Diamondback Energy Institutional investors have recently modified their holdings of the stock. Mirae Asset Global Investments Co. Ltd. raised its position in Diamondback Energy by 18.3% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 139,308 shares of the oil and natural gas company’s stock worth $20,942,000 after buying an additional 21,575 shares during the last quarter. Massachusetts Financial Services Co. MA raised its holdings in Diamondback Energy by 4.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,441,622 shares of the oil and natural gas company’s stock worth $216,719,000 after purchasing an additional 56,194 shares in the last quarter. Eagle Global Advisors LLC purchased a new position in Diamondback Energy during the fourth quarter worth about $5,472,000. Hsbc Holdings PLC raised its holdings in Diamondback Energy by 16.3% during the fourth quarter. Hsbc Holdings PLC now owns 338,577 shares of the oil and natural gas company’s stock worth $50,890,000 after purchasing an additional 47,450 shares in the last quarter. Finally, QSM Asset Management Ltd lifted its position in Diamondback Energy by 100.0% in the fourth quarter. QSM Asset Management Ltd now owns 61,000 shares of the oil and natural gas company’s stock valued at $9,170,000 after purchasing an additional 30,500 shares during the period. Hedge funds and other institutional investors own 90.01% of the company’s stock.
Diamondback Energy Stock Performance Shares of FANG opened at $203.02 on Thursday. Diamondback Energy has a 1 year low of $134.30 and a 1 year high of $214.51. The stock has a market capitalization of $57.11 billion, a PE ratio of 236.07 and a beta of 0.42. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.55 and a current ratio of 0.56. The stock has a 50-day simple moving average of $191.29 and a 200-day simple moving average of $182.04.
Diamondback Energy (NASDAQ:FANG – Get Free Report) last issued its earnings results on Monday, May 4th. The oil and natural gas company reported $4.23 earnings per share for the quarter, beating the consensus estimate of $3.74 by $0.49. Diamondback Energy had a net margin of 1.87% and a return on equity of 7.76%. The firm had revenue of $4.24 billion for the quarter, compared to analysts’ expectations of $3.83 billion. During the same quarter last year, the company earned $4.54 earnings per share. The firm’s revenue was up 4.7% compared to the same quarter last year. On average, analysts predict that Diamondback Energy will post 18.9 earnings per share for the current fiscal year.
Diamondback Energy Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 14th were issued a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date was Thursday, May 14th. This is an increase from Diamondback Energy’s previous quarterly dividend of $1.05. Diamondback Energy’s dividend payout ratio (DPR) is currently 511.63%.
Diamondback Energy Company Profile (Get Free Report)
Diamondback Energy, Inc (NASDAQ: FANG) is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback’s activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
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Diamondback Energy (FANG - Free Report) closed the most recent trading day at $195.54, moving +2.85% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.01%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.
Coming into today, shares of the energy exploration and production company had gained 3.61% in the past month. In that same time, the Oils-Energy sector gained 1.22%, while the S&P 500 gained 0.32%.
The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company's earnings report is expected on August 3, 2026. The company is expected to report EPS of $6.08, up 127.72% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.82 billion, reflecting a 30.95% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.14 per share and revenue of $18.35 billion, indicating changes of +43.16% and +22.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature 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 shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 3.93% lower. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 9.98, which means Diamondback Energy is trading at a discount to the group.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
In the latest close session, Diamondback Energy (FANG - Free Report) was down 2.47% at $182.00. The stock's performance was behind the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Shares of the energy exploration and production company witnessed a loss of 5.06% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 3.61%, and the S&P 500's gain of 1.13%.
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 3, 2026. It is anticipated that the company will report an EPS of $5.84, marking a 118.73% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.75 billion, up 29.28% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.33 per share and revenue of $17.9 billion. These totals would mark changes of +44.58% and +19.13%, respectively, from last year.
Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.62% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 9.65 right now. For comparison, its industry has an average Forward P/E of 9.61, which means Diamondback Energy is trading at a premium to the group.
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 177, positioning it in the bottom 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Diamondback Energy?The final step today is to look at a stock that meets our ESP qualifications. Diamondback Energy (FANG - Free Report) earns a #3 (Hold) 28 days from its next quarterly earnings release on August 3, 2026, and its Most Accurate Estimate comes in at $5.89 a share.
By taking the percentage difference between the $5.89 Most Accurate Estimate and the $5.65 Zacks Consensus Estimate, Diamondback Energy has an Earnings ESP of +4.29%. Investors should also know that FANG is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
FANG is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at EOG Resources (EOG - Free Report) as well.
EOG Resources is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 4, 2026. EOG's Most Accurate Estimate sits at $5.03 a share 29 days from its next earnings release.
The Zacks Consensus Estimate for EOG Resources is $4.90, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.77%.
Because both stocks hold a positive Earnings ESP, FANG and EOG could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
June 30, 2026 18:01 ET | Source: Diamondback Energy, Inc.
MIDLAND, Texas, June 30, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it plans to release second quarter 2026 financial results on August 3, 2026 after the market closes.
In connection with the earnings release, Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2026 on Tuesday, August 4, 2026 at 8:00 a.m. CT. Access to the live webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider SM Energy?The final step today is to look at a stock that meets our ESP qualifications. SM Energy (SM - Free Report) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 30, 2026, and its Most Accurate Estimate comes in at $1.96 a share.
SM has an Earnings ESP figure of +4.81%, which, as explained above, is calculated by taking the percentage difference between the $1.96 Most Accurate Estimate and the Zacks Consensus Estimate of $1.87. SM Energy is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SM is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Diamondback Energy (FANG - Free Report) as well.
Diamondback Energy, which is readying to report earnings on August 3, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $5.89 a share, and FANG is 34 days out from its next earnings report.
For Diamondback Energy, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.65 is +4.25%.
Because both stocks hold a positive Earnings ESP, SM and FANG could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Energy sector fundamentals are strengthening as the Iran War de-risks, oil prices normalize, and cyclical growth accelerates. Low global inventories, disciplined CapEx, and secular demand drivers set up a bullish multi-year regime for energy equities. I favor Permian-focused royalty and landowners (LandBridge, Texas Pacific, Freehold Royalties), Canadian oil sands leaders (Canadian Natural Resources, Suncor Energy, Cenovus), and low-cost U.S. producers (Diamondback, Permian Resources).
Diamondback Energy (FANG - Free Report) closed at $179.91 in the latest trading session, marking a -1.45% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
Shares of the energy exploration and production company witnessed a loss of 5.97% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.57%, and underperforming the S&P 500's loss of 1.42%.
The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company is forecasted to report an EPS of $5.73, showcasing a 114.61% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.8 billion, indicating a 30.5% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.92 per share and a revenue of $18.13 billion, signifying shifts of +48.99% and +20.68%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.37% rise in the Zacks Consensus EPS estimate. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).
Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 9.16. This denotes no noticeable deviation relative to the industry average Forward P/E of 9.16.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
The pitch on the REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) is pure Robinhood catnip. Mega-cap tech names you already love, monthly checks, and a distribution yield that has hovered in the 25% range since launch.
FEPI sells covered calls on a FANG+ style basket and hands the option premium back as income, which is why retail forums treat it like a cheat code for owning NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) without the volatility. The question worth asking before you click buy is whether FEPI is doing something genuinely useful in your portfolio, or quietly rebranding capped upside as cash flow.
How the fund actually makes money FEPI holds roughly 15 of the largest innovation-driven tech names (the Mag 7, and a few more) and writes out-of-the-money calls on individual securities to capture premium. REX Financial’s Taylor Ranney has described the design as one aimed at “maintain[ing] NAV stability” while harvesting option income.
The expense ratio runs around 0.65%, rich next to a vanilla index fund but reasonable for an actively managed options overlay. Monthly distributions ran from about $0.87 to $0.95 in early 2026, then shifted to weekly payments around $0.21 each in June. The cadence change matters because the fund is now paying out almost continuously.
What you got versus what you could have had Compare against Invesco QQQ Trust (NASDAQ:QQQ), the simplest growth alternative. FEPI’s shares sit near $42, up about 18% over the past year on a total-return basis with distributions reinvested. QQQ delivered 32.6% over the same year and 16.5% YTD against FEPI’s 2.8% YTD. The 25% headline yield is real. A chunk of that yield just comes back through a NAV that does not appreciate the way the underlying basket does.
The opportunity cost is concrete. NVIDIA just reported Q1 FY27 revenue of $81.61 billion, up 85% year over year, with Data Center sales of $75.25 billion. Jensen Huang called it “the largest infrastructure expansion in human history”. NVDA is up 27% over the past year and 932% over five. Apple (NASDAQ:AAPL) has climbed 37% over the past year. Every time those names rip through a strike price, FEPI hands a slice of the breakout to whoever bought the call.
Some underlyings drag. Meta Platforms (NASDAQ:META) is down 23% over the past year as the Street digests $125 to $145 billion in 2026 capex for Meta Superintelligence Labs. On names like that, the call premium cushioned the fall. That mix is what FEPI is actually selling.
The tradeoffs you have to accept Return of capital. Part of the distribution is tax-deferred return of capital, which feels great until you notice the NAV math working against you when the underlying does not run. Distributions are sliding. Monthly checks averaged roughly $1.10 in 2024 and about $0.95 in 2025, a quiet compression worth watching. Overlap risk. If you already own QQQ, VOO, or any of those mega-caps directly, FEPI is just writing calls on the exposure sitting in your other accounts. Who should sit in this and who shouldn’t For a Robinhood account under 35 reading “25% yield” as “25% total return,” FEPI is dangerous. Capping upside on the best growth basket in the market makes little sense for a multi-decade compounding window, and Reddit’s own NVDA threads, including “All My Eggs in One Basket”, show retail already misjudging tech exposure.
For a retiree or near-retiree who genuinely understands covered-call mechanics and wants a small, deliberate income sleeve (5%, possibly up to 8% of the portfolio) alongside dividend equity and bonds, FEPI fills a defined role. Approach it as a yield instrument rather than a tech fund. The 25% headline is real. It describes a distribution, which behaves differently from a total return.
June 15, 2026 — (Maple Hill Syndicate) — Oil and gasoline prices will “drop like a rock,” President Trump has said.
When? “As soon as the war is over.”
How far? “To where they were before.”
I disagree, for several reasons. Some refineries, pipelines and storage facilities have been destroyed in combat, and will take a long time to fix. Governments see, more than ever, the need for strategic petroleum reserves, so they will be busy buying oil.
And then there's the uncertainty premium. People who have seen $100 oil, and watched as Iran closed the Strait of Hormuz, will be uncertain about future oil supplies. Their nervousness will help buoy up the price.
So, even if the Iran war ends soon, I expect oil prices to bounce around between $80 and $90 for much of the next two years, rather than reverting to the $65 to $74 range of last year.
These are some of the reasons why I favor energy stocks, especially oil-and-gas stocks. Energy makes up only 3.5% of the Standard & Poor's 500 Index. My clients have about double that, and I may expand the energy weighting in their portfolios further.
Fossils?Are fossil fuels, oil and gas, outdated? In a sense, are they fossils themselves?
Some people believe so, but I think they are confusing long-range forecasts with present realities.
According to the U.S. Energy Information Administration, oil accounts for about 38% of total U.S. energy consumption, and natural gas 36%. Throw in coal at 9% and you find that fossil fuels account for about 83% of all energy used in America.
Almost all of the rest is nuclear and renewable-source energy, including wind, solar and hydro.
My conclusion from these facts is that oil and natural gas will be significant energy sources in the U.S. for at least another decade.
DiamondbackOne of my favorite energy stocks is Diamondback Energy Inc. (FANG), based in Midland, Texas. It drills exclusively in the Permian Basin, primarily in western Texas, an advantage at a time of worldwide geopolitical uncertainty.
Diamondback's profit was only about $1.7 billion last year, but that was a down year for the company. Analysts expect profit to jump to $5.6 billion this year. That's one reason 28 of the 31 analysts who follow the company recommend it.
TotalEnergiesAnother favorite of mine is TotalEnergies SE (TTE), based in Courbevoie, France. In addition to being the largest oil company in France, it has large-scale operations in solar and wind energy.
Currently, TotalEnergies generates about 34 gigawatts of electricity from solar and wind projects worldwide. The company says it hopes to raise that to 100 gigawatts by 2030. A gigawatt equals a billion watts, enough to power 750,000 to a million homes.
At 13 times earnings and 1.1 times revenue, I think TotalEnergies is attractively priced.
Exxon MobilFor clients who prefer a conservative approach, I often buy Exxon Mobil Corp. XOM , the largest U.S. oil company. It has a strong balance sheet, with debt only 19% of equity. It has more than $8 billion in cash and cash equivalents.
Exxon has shown a profit in 29 of the past 30 years, the sole exception being 2020, when the pandemic reduced gasoline consumption.
The company has paid a dividend every year for the past 43 years, and increased the amount of the dividend every year. The dividend yield is currently about 2.8%.
Electric RevolutionU.S. electricity demand was nearly flat for more than a decade until 2021. Now it's growing, and some authorities estimate it will grow 20% over the next four years, as data centers, which are electricity hogs, come online.
The pie chart of fuel sources for electric power generation looks different than the one for overall energy use. Oil generates less than 1% of the nation's electricity. Natural gas generates about 41%.
Nuclear power is next, at 18%. Coal, despite environmental groups' opposition, accounts for about 17%. Wind is about 11%, solar 7% and hydroelectric 6%. Figures are again from the U.S. Energy Information Administration.
I think there are opportunities, from time to time, in each of these industries. I made some good profits in coal in 2024-2025, but have no investments there now. I'm mostly in oil and gas, but am looking for nuclear opportunities.
Disclosure: I own Diamondback and TotalEnergies for most of my clients. I own call options on SLB Ltd. (SLB), an oilfield services giant, personally and for a few clients.
One or more of my firm's clients own Chevron Corp. (CVX), ConocoPhillips (COP), Eco Wave Power Global AB (WAVE), Exxon Mobil Corp. XOM , Global X MLP & Energy Infrastructure ETF (MLPX), Halliburton Co. (HAL), TEMA Electrification ETF (VOLT) and Tourmaline Oil Corp. (TRMLF).
John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts. He or his clients may own or trade securities discussed in this column. He can be reached at [email protected].
Diamondback Energy (FANG - Free Report) closed the most recent trading day at $189.96, moving -1.13% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.65% for the day. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 3.07%.
The stock of energy exploration and production company has fallen by 5.62% in the past month, lagging the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 0.48%.
The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company is expected to report EPS of $5.73, up 114.61% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.8 billion, indicating a 30.5% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.92 per share and revenue of $18.13 billion, indicating changes of +48.99% and +20.68%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Diamondback Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.79% increase. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).
Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 9.64. This expresses no noticeable deviation compared to the average Forward P/E of 9.64 of its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 108, this industry ranks in the top 45% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Diamond Hill's long positions in software businesses, including Microsoft , Salesforce and Adobe, were among the most notable detractors in the quarter. Exploration and production companies Chevron and Diamondback Energy saw shares rise as the sharp increase in oil prices drove a broad rally across US-based oil producers. Diamond Hill initiated a position in Gartner as concerns around slowing revenue growth and potential disruption from AI created an opportunity to invest at an attractive valuation.
Shares of Occidental Petroleum (NYSE:OXY | OXY Price Prediction) are up 45% year to date (YTD) heading into Tuesday’s open, an impressive performer among large U.S. oil producers in 2026. The question is whether OXY stock is genuinely running away from peers, or simply leading a tight pack.
For context, ConocoPhillips (NYSE:COP) stock is up 33% YTD, while Diamondback Energy (NASDAQ:FANG) stock has gained 37%. All three have ridden a sharp rebound in WTI crude oil, which climbed from the mid-$50s in early January to $103 recently.
The short answer to the title’s question: yes, OXY stock is the YTD leader, but the spread is moderate. Occidental’s edge over its peers is real but modest, and the lead is a recent development rather than a structural shift.
OXY Doesn’t Win on All Time Frames Stretch the window out and the picture changes. On a one-year basis, FANG stock is up 46%, COP stock is up 35%, and OXY stock is up 39%. Diamondback actually tops the three over twelve months.
Over five years, Diamondback is still the winner, with FANG up 157% and COP up 117% versus OXY at 131%. It seems, then, that the 2026 leadership reflects a sector rotation rather than a fundamental performance shift.
Why Occidental Has Been Out in Front The cleanest catalyst is the OxyChem chemicals divestiture to Berkshire Hathaway (NYSE:BRK-B), which closed January 2. Proceeds were used to cut principal debt by $5.8 billion, bringing total debt to $15 billion, and Occidental raised its quarterly dividend 8% to $0.26 per share.
Production trends helped. Occidental delivered Q4 2025 output of 1,481 thousand barrels of oil equivalent per day (Mboed), above the high end of guidance, with full-year EPS of $2.21 on revenue of $22.08 billion. Occidental Petroleum CEO Vicki Hollub stated the company remains “focused on generating resilient free cash flow” after the OxyChem sale.
There’s also the Warren Buffett factor. Berkshire Hathaway’s standing stake provides a marginal-buyer narrative that COP and FANG don’t have, and Occidental’s Direct Air Capture program adds a strategic-optionality angle peers lack. Insider data also shows eight board directors acquired shares on May 4, reinforcing the alignment signal.
ConocoPhillips Offers Scale and Diversification ConocoPhillips has its own story. Q1 2026 adjusted EPS came in at $1.89, beating the $1.69 consensus, on revenue of $16.05 billion. The Marathon Oil integration is generating more than $1 billion in run-rate synergies.
CEO Ryan Lance reiterated a plan to return 45% of cash flow from operations to shareholders, with $1 billion in Q1 2026 buybacks and the Alaska Willow project 50% complete. ConocoPhillips arguably offers the cleanest balance sheet of the three.
Diamondback Is a Pure-Play Permian Operator Diamondback Energy reported Q4 2025 adjusted EPS of $1.74 against a $2.41 consensus, weighed down by a $3.65 billion non-cash impairment and Permian gas takeaway constraints that pressured realizations. Oil output of 512.8 MBO/d hit the high end of guidance.
CEO Kaes Van’t Hof characterized the macro as a “yellow light” scenario and signaled Diamondback expects to “continue to be aggressive buyers of our stock until commodity prices recover”. FANG stock remains a high-quality Permian pure-play in this group.
What to Watch From Here The bull case for continued Occidental outperformance rests on three pillars: a supportive WTI tape, ongoing debt reduction freeing up capital returns, and any signal that Berkshire Hathaway is still accumulating. The bear case is the flip side: Occidental still carries more financial leverage than ConocoPhillips, and less pure-play upside than Diamondback if oil grinds higher.
Keep an eye on whether WTI crude oil holds the $100 level after its April 7 peak of $114.58, and watch for any updated Berkshire filings or fresh sector analyst notes. The next Occidental quarterly update will be the cleanest test of whether YTD leadership extends into the second half of the year.
The takeaway: yes, Occidental Petroleum is leading ConocoPhillips and Diamondback Energy in 2026 so far, but prudent investors should treat the gap as a moderate edge inside of a strong oil tape. All three names are working, but for different reasons.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Diamondback Energy (FANG - Free Report) .
Diamondback currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 25 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 78.1% and 9.4% of all recommendations.
Brokerage Recommendation Trends for FANG
Check price target & stock forecast for Diamondback here>>>
The ABR suggests buying Diamondback, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in FANG?In terms of earnings estimate revisions for Diamondback, the Zacks Consensus Estimate for the current year has increased 13.1% over the past month to $18.93.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Diamondback. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Diamondback may serve as a useful guide for investors.
Key Takeaways Cenovus generates significant upstream revenues from assets in Canada and Asia Pacific.CVE is set to benefit from WTI crude prices above $100 per barrel amid Middle East tensions.EIA projects 2026 WTI crude prices at $85.68 per barrel compared with $65.40 per barrel in 2025. Cenovus Energy Inc. (CVE - Free Report) has a diversified portfolio with assets spanning both upstream exploration and downstream refining. The company generates substantial revenues from its upstream operations, which are strategically spread across Canada and the Asia Pacific region. Since CVE is involved in the exploration and production of crude oil, its overall business model is highly sensitive to the volatility of global crude prices.
West Texas Intermediate (“WTI”) crude prices are trading above $100 per barrel, according to oilprice.com. This significant surge in crude prices is primarily driven by the ongoing conflict and geopolitical tensions in the Middle East. Brent crude oil is also trading above $110 per barrel, as per oilprice.com. These elevated WTI and Brent crude prices directly enhance the profitability and earnings potential of the Canadian integrated energy company’s upstream operations.
The U.S. Energy Information Administration (“EIA”) projects a continued favorable pricing environment in its short-term energy outlook. The EIA estimates that WTI crude prices will average $85.68 per barrel in 2026. This is significantly higher than the $65.40 per barrel recorded in 2025. The combination of robust current pricing and resilient EIA forecasts firmly positions Cenovus to capitalize on favorable market conditions.
Will FANG & XOM Gain From High Oil Prices?Like Cenovus, Diamondback Energy, Inc. (FANG - Free Report) and Exxon Mobil Corporation (XOM - Free Report) have a significant presence in upstream operations, exposing their business models to crude price volatility.
Diamondback Energy operates as a premier, Permian-focused independent oil and gas producer in Texas. FANG focuses on multi-layered intervals in the Spraberry, Wolfcamp and Bone Spring formations, maximizing production through advanced horizontal drilling and high-intensity completion techniques.
ExxonMobil drives growth through a geographically diversified, high-quality asset base. XOM has advantaged assets in the Permian Basin, the most prolific basin in the United States and offshore Guyana.
Therefore, a strong footprint in upstream operations, coupled with elevated crude prices, is likely to benefit FANG and XOM.
CVE’s Price Performance, Valuation & EstimatesCenovus shares have gained 139.8% over the past year compared with 109.8% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.79X. This is below the broader industry average of 8.15X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE’s 2026 earnings has remained constant over the past seven days.
Image Source: Zacks Investment Research
CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Rising Middle East tensions are driving volatility, pushing investors toward low-beta names like Exxon Mobil.Screen: beta zero to point six, positive four-week move, volume above fifty thousand, price five dollars-plus.LQDA's YUTREPIA adoption is growing; VLO adds lower-carbon fuels; FANG gains from high oil prices. Escalating tensions in the Middle East have created significant uncertainty, making the U.S. stock market highly volatile. With fears dominating the market, it is ideal for investors to increase their allocation to low-beta stocks. Stocks that may attract investors' attention are Liquidia Corporation (LQDA - Free Report) , Exxon Mobil Corporation (XOM - Free Report) , Valero Energy Corporation (VLO - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) .
What Does Beta of a Stock Measure?Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria Using Research Wizard:We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1 (Strong Buy):Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 39 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical development.
Exxon Mobil
West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. Ongoing tensions in the Middle East are driving the high prices. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting ExxonMobil’s exploration and production activities, which derive the majority of its earnings.
Valero Energy
Valero Energy is among the world's leading low-cost fuel producers, with a combined throughput capacity of 3 million barrels per day. In addition to its presence in traditional refining, the company has exposure to lower-carbon fuels, comprising sustainable aviation fuel, renewable diesel and ethanol.
Diamondback Energy
Diamondback is a pure-play Permian producer and benefits from the ongoing high crude pricing environment. Apart from having an investment-grade balance sheet, the company has a promising production outlook, thanks to the huge inventory of drilling locations. Diamondback also expects its well costs in the prolific Midland basin to continue declining, aiding its bottom line.
Key Takeaways WTI stays above $100 amid Middle East tensions, keeping Permian trio FANG, XOM and CVX in the spotlight.EIA projects Permian crude at 6.63MM bpd this year vs. 6.58MM last year, a tailwind for FANG, XOM and CVX.FANG cites 8,854 Permian sites; XOM says proppant lifts recovery up to 20%; CVX says fewer rigs boost volumes. Oil prices have been making newspaper headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Although the tensions have made the stock market highly uncertain, energy stocks have retained their appeal. Is it time to bet on stocks such as Diamondback Energy, Inc. (FANG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) ?
High Oil Price to Aid Permian Producers?West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. The high prices are being driven by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting exploration and production activities.
In this regard, the upstream players that are operating in the Permian, the most prolific basin in the United States, are likely to continue to gain from the ongoing strength in oil prices. In the outlook, EIA estimated that total crude oil production in the Permian would be 6.63 million barrels per day this year, higher than 6.58 million barrels per day last year.
Thus, with high prices of the commodity, production will likely increase in the most prolific basin, aiding the bottom lines of explorers and producers operating in the basin.
3 Permian Players in the SpotlightDiamondback Energyis a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. The upstream energy major mentioned that those wells are economical even if the price of oil fell to $50 per barrel. Thus, with premium drilling inventories and an investment-grade balance sheet, Diamondback Energy, sporting a Zacks Rank #1 (Strong Buy), is likely to capitalize on the ongoing strength of oil prices.
ExxonMobilhas a strong footprint in the Permian and is among the advantageous assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries by up to as much as 20%. With the acquisition of Pioneer Natural Resources in 2024, XOM enhanced its footprint in the basin, further strengthening its production outlook while realizing significant cost synergies. Thus, XOM, with a Zacks Rank of 1, is also well poised to gain like FANG. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Zacks #1 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Chevron added that to increase its oil and gas volumes, it is now employing significantly fewer rigs. Thus, like XOM and FANG, CVX is also strongly placed now.
The biggest winners from high oil prices are upstream oil and gas producers. U.S.-based producers, such as Diamondback Energy (FANG +1.21%), are doing quite well because the geopolitical conflict in the Middle East hasn't affected their operations. But the upstream will get hit when oil prices eventually fall.
That's why long-term investors will appreciate midstream businesses like Energy Transfer (ET +1.60%), Enterprise Products Partners (EPD +0.11%), and Kinder Morgan (KMI +2.60%). It doesn't matter if oil prices are high or low; these energy businesses win either way.
Image source: Getty Images.
The world's oil reserves are thinning out The world has an oil buffer to protect against short-term supply shocks. This helps oil markets function, but those reserves aren't meant to cover a long disruption, like the one caused by the current geopolitical conflict. The reserve was once 80 days of oil, but it's getting lower each day. U.S. midstream businesses couldn't care less about the global oil reserve right now. In fact, their businesses are booming.
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The volume of energy Energy Transfer moved through its energy infrastructure system in the first quarter of 2026 rose across its business, year over year. The master limited partnership's (MLP's) distributable cash flow increased nearly 17% year over year. And management is so optimistic that it increased its full-year guidance. Energy Transfer isn't alone in its success.
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Enterprise Products Partners saw record volumes across many of its divisions in the first quarter, reporting a 5% increase in distributable cash flow. Kinder Morgan also benefited from strong volumes, reporting strong first-quarter results.
There are two facts to consider here. First, the North American market isn't impacted by the Middle East conflict. Thus, the energy sector is operating normally and may be seeing a slight uptick in demand from other countries. That's good for Energy Transfer and its peers.
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Second, long-term demand for North American oil and natural gas could increase due to the geopolitical conflict if countries reconsider energy security. Stable financial and political systems could make North American energy a go-to solution for countries worried about future supply disruptions. That would mean more even volume for Energy Transfer and its peers.
Energy Transfer and its midstream peers are boring toll takers The key is that Energy Transfer, Enterprise, and Kinder Morgan get paid for moving energy through their systems. The price of what is being moved is less important than the volume being moved. Indeed, the fee income they generate is relatively stable over time, which supports lofty yields. Energy Transfer, for example, has a 6.6% distribution yield, with Enterprise at 5.5%, and Kinder Morgan paying 3.4%.
If you are looking for energy stocks that win no matter what happens in the Middle East, consider North American midstream giants like Energy Transfer and its midstream peers.
Key Takeaways WTI above $95/barrel is spurring Permian drilling, raising oil output and associated gas.EIA sees Permian crude 6.63MM bpd this year vs. 6.58MM last year; gas rising into next year.FANG's Q1 mix was over half oil, with the rest natural gas and NGLs, positioned for higher output. High oil prices have been making newspaper headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Handsome oil prices are supporting increased crude production, which is boosting associated natural gas output from wells in prolific basins. Could this trend brighten the business outlook for Diamondback Energy, Inc. (FANG - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) ?
More Oil Drilling Brings Up Extra Natural GasThe price of West Texas Intermediate (“WTI”) crude is trading above $95 per barrel, which is highly favorable for exploration and production activities. Increased drilling and upstream activities will likely result in higher production of the commodity in the Permian, the most prolific basin in the United States. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook estimated that total crude oil production in the Permian would be 6.63 million barrels per day this year, higher than 6.58 million barrels per day last year.
This higher crude production, being backed by extremely handsome prices, is bringing up additional associated natural gas, especially in the Permian, the EIA added. Thus, the production of natural gas will likely continue to rise through next year, EIA believes.
Increased production of both oil and natural gas is going to aid the earnings of explorers and producers in the Permian Basin.
3 Permian Players in the SpotlightDiamondback Energy is a well-known pure-play Permian player. In the first quarter of this year, the company's oil production was responsible for more than 50% of total volumes, while the rest was natural gas and natural gas liquids. FANG, sporting a Zacks Rank #1 (Strong Buy), is well-positioned to capitalize on rising oil prices and increasing gas production.
ExxonMobil, with a Zacks Rank of 1, has a strong footprint in the Permian and is among the advantageous assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries by up to as much as 20%. Production of liquids by XOM in the first quarter of 2026 accounted for more than 70% of total volumes, while the rest was natural gas. Thus, like FANG, XOM is also in a sweet spot now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Zacks #1 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Being a producer of both oil and natural gas, the company is well-positioned to gain.
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Diamondback Energy (FANG - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
Diamondback Energy is one of 238 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Diamondback Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for FANG's full-year earnings has moved 115.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, FANG has moved about 33.5% on a year-to-date basis. Meanwhile, the Oils-Energy sector has returned an average of 30.8% on a year-to-date basis. This shows that Diamondback Energy is outperforming its peers so far this year.
Cenovus Energy (CVE - Free Report) is another Oils-Energy stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 77.6%.
Over the past three months, Cenovus Energy's consensus EPS estimate for the current year has increased 165.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Diamondback Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #24 in the Zacks Industry Rank. On average, stocks in this group have gained 28.4% this year, meaning that FANG is performing better in terms of year-to-date returns.
In contrast, Cenovus Energy falls under the Oil and Gas - Integrated - Canadian industry. Currently, this industry has 4 stocks and is ranked #6. Since the beginning of the year, the industry has moved +61.4%.
Investors with an interest in Oils-Energy stocks should continue to track Diamondback Energy and Cenovus Energy. These stocks will be looking to continue their solid performance.
Diamondback Energy (FANG) is downgraded to Buy after a ~40% rally, though valuation remains attractive. FANG delivered strong Q1 results, raised production guidance, expects accelerated debt reduction, and increased its dividend and buybacks. Macroeconomic risks from the Iran conflict and potential inflationary shocks warrant a higher margin of safety for oil equities.
On June 01, 2026, Diamondback Energy Inc (FANG) shares rose 3.9% to a current price of $199.03. This movement comes in the context of a 52-week range where the
An Exxon senior vice president just told Tom Bilyeu’s Impact Theory podcast that physical Brent cargoes are heading to $150 to $160 per barrel in the coming weeks as global inventories approach all-time lows. Brent closed last Tuesday at $102.75. If that warning lands, every barrel-levered name on US exchanges reprices by the end of summer, and the window to position is closing now.
I’ve been covering energy equities through three crude cycles, and the setup heading into June 2026 is the most asymmetric I’ve seen since the 2022 spike. Below are the five names I’d own if the SVP’s call cashes.
1. Texas Pacific Land Corp (TPL): The Royalty Cheat Code Start here, because almost nobody outside energy circles understands what Texas Pacific Land Corporation (NYSE:TPL | TPL Price Prediction) actually is. TPL owns the dirt under one of the most productive stretches of the Permian Basin. The business model is pure royalty: every barrel pumped on its acreage by someone else flows back as a royalty check at near-100% margin, with no drilling and no hedging. When crude rips 40% higher, TPL’s cash flows rip with it, no capex required. CEO Tyler Glover said it plainly: "With our unhedged commodity position, we will fully capture the upside from elevated commodity prices."
Q1 2026 was already a record before the spike hits. Revenue came in at $236.82 million against $195.98 million a year earlier, oil and gas royalty production jumped 19.3% to 37.1 thousand Boe/d, and adjusted EBITDA margin sat at a stunning 77%. The balance sheet carries $247.6 million in cash and zero debt. There is no operational drag on a price spike here. The stock has cooled 15% over the past month from its May peak, which is exactly the kind of pause that frustrates late buyers and rewards the early ones.
The royalty model is the cleanest setup on this list. The next name is the one waving the red flag in the first place.
2. ExxonMobil (XOM): The Company Sounding Its Own Alarm The irony of stock #2 is that the warning came from inside this house. Exxon Mobil Corporation (NYSE:XOM) is the largest US integrated, with Permian dominance upstream and a refining footprint that captures margin on both ends of a price spike. When crude goes vertical, Exxon captures wellhead realizations, refining crack spreads, and trading desk optimization in the same quarter. CEO Darren Woods told investors after Q1 that "Events in the Middle East tested that strength… underscored the importance of reliable, affordable energy products."
Q1 2026 already showed the earnings engine working through chaos. Underlying earnings hit $8.77 billion versus $7.58 billion a year ago, even after stripping out $3.88 billion in mark-to-market derivative losses and $706 million in Middle East disruption losses. Adjusted EPS of $1.16 beat consensus, the fourth straight beat. Management plans $20 billion in buybacks for 2026 against $27 to $29 billion of capex. The stock has already done work, up 26% year to date and 51% over the past year, yet retail is still piling in. A single Reddit post titled "Exxon warns oil inventories near record lows, price spike ahead" pulled 596 upvotes and 93 comments on June 1. The narrative is going mainstream.
Exxon is the bellwether. The next name is the Permian pure-play with a famous shareholder.
3. Occidental Petroleum (OXY): The Buffett-Backed Crude Beta Berkshire Hathaway’s largest energy holding is also the cleanest Permian operator on the list. Occidental Petroleum Corporation (NYSE:OXY) just stripped the OxyChem business off its balance sheet in a sale to Berkshire that closed January 2, 2026, using proceeds to crush principal debt by $5.8 billion to $15 billion total. A delevered Permian operator going into a $150 print is exactly the asymmetric setup Buffett tends to want to own.
The stock has already moved 44% year to date and 48% over the past year, yet still trades at a forward P/E of 12. Q4 2025 production exceeded the high end of guidance at 1,481 Mboed, and management hiked the dividend 8% to $0.26 per share quarterly, a payout that has doubled over four years. With debt cut and OxyChem off the deck, every dollar of crude upside flows straighter to free cash than at any point in Occidental’s recent history.
OXY is the deleveraging play. Stock #4 wins regardless of which producer drills the next well.
4. Schlumberger (SLB): The Picks and Shovels When producers scramble to add capacity into a price spike, demand for drilling, completions, and services explodes. Schlumberger Limited (NYSE:SLB) is the global infrastructure trade. The company gets paid whether ExxonMobil or Diamondback or Aramco is pulling the next barrel out of the ground. CEO Olivier Le Peuch already told investors he expects "postconflict liquid commodity prices to remain above preconflict levels due to near-term supply disruptions" with a sustained geopolitical risk premium.
Q1 2026 revenue came in at $8.72 billion, up 2.7% year over year, with the ChampionX acquisition contributing $838 million in revenue. Digital ARR crossed $1 billion, up 15% year over year, with Data Center Solutions up 45%. Management committed to $4 billion-plus in shareholder returns for 2026. Shares are still up 71% over the past year and 43% year to date, and a recent 4% weekly pullback looks like a gift if the SVP’s call cashes.
SLB is the diversified bet. Stock #5 is the undiluted one, and it has been the most beaten up of the bunch.
5. Diamondback Energy (FANG): The Pure Permian Punchline This is the payoff. Diamondback Energy (NASDAQ:FANG) is a Permian pure-play with some of the lowest break-evens in the basin and maximum operational torque to crude. Q4 2025 was ugly: a $3.65 billion non-cash impairment from the SEC ceiling test crushed GAAP earnings to a $5.11 per share loss, and Q4 realized oil prices collapsed to $58.00 per barrel from $69.48 a year earlier. That impairment is exactly the kind of mark that reverses violently when crude reprices higher.
The cleanest expression of the trade lives here. Diamondback repurchased roughly 5% of its shares in 2025 ($2.0 billion across 13.84 million shares), with $2.3 billion remaining on the $8 billion authorization, and CEO Kaes Van’t Hof said "We expect to continue to be aggressive buyers of our stock until commodity prices recover." Forward P/E sits at 9 against an analyst target of $232.86, with the current price near $200.60. Q1 oil production guided to 500 to 510 MBO/d for 2026, unhedged enough to mean every $10 move on the barrel hits the income statement with force.
The Bottom Line Brent at $102.75 versus an Exxon insider calling for $150 to $160 is the kind of asymmetric setup the market rarely telegraphs in advance. The EIA already estimates global oil inventories will fall by an average of 8.5 million barrels per day in Q2 2026, and Bilyeu warned on the same podcast that "any company that’s in a weakened position or is extremely exposed to energy costs, poof, they just stop existing," pointing to Spirit Airlines as the early warning. Royalties, integrateds, Permian pure-plays, and services each capture the spike differently. The window to choose is the next few weeks, not the next few quarters.
A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Diamondback due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Diamondback Energy Q1 Earnings Beat Estimates, Dividend RaisedDiamondback Energy reported first-quarter 2026 adjusted earnings per share (EPS) of $4.23, which beat the Zacks Consensus Estimate of $3.55, driven by strong production. However, the company’s bottom line declined from the year-ago adjusted profit of $4.54. The underperformance was due to a 91.5% drop in the year-over-year realized natural gas prices.
This Midland, TX-based oil and gas exploration and production company’s revenues of $4.2 billion increased 4.7% from the year-ago quarter and topped the Zacks Consensus Estimate by 10.6%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income.
In the first quarter of 2026, Diamondback Energy generated free cash flow of about $1.7 billion, while adjusted free cash flow stood at $1.74 billion. Over the same period, it bought back nearly 3.3 million common shares for roughly $548 million at an average price of $167.61 per share, excluding excise taxes. This included a $509 million transaction to repurchase 3 million shares from SGF FANG Holdings, LP.
Overall, shareholder returns totaled approximately $859 million through a combination of share repurchases and the declared base dividend for the quarter, accounting for 50% of adjusted free cash flow.
FANG’s board of directors approved a 5% increase to the company's base quarterly dividend, raising it to $1.10 per common share for the first quarter of 2026, payable on May 21, 2026, to stockholders of record on May 14.
Production & Realized PricesFANG’s production of oil and natural gas averaged 979,356 barrels of oil equivalent per day (BOE/d), comprising 53.2% oil. The figure was up 15.1% from the year-ago quarter and beat our estimate of 951,053.3 BOE/d. While crude and natural gas output increased 9.5% and 17.7% year over year, respectively, natural gas liquids volumes climbed 26.9%.
The average realized oil price during the quarter was $73.47 per barrel, 3.5% higher than the year-ago realization of $70.95. The figure also beat our estimate of $51.71 per barrel. Meanwhile, the average realized natural gas price decreased to 18 cents per thousand cubic feet from $2.11 in the prior year. The figure was also below our estimate of $1.71. Overall, the upstream oil and gas company fetched $43.40 per barrel compared with $47.77 a year ago.
Costs & Financial PositionDiamondback Energy’s first-quarter cash operating cost was $11.26 per BOE compared with $10.48 in the prior-year quarter and our estimate of $11.34. The increase in costs compared with the year-ago period reflected a rise in lease operating expenses to $6.21 per BOE from $5.33 in the first quarter of 2025 and an increase in Production and ad valorem taxes to $3.04 per BOE from $2.98 in the prior-year quarter.
However, FANG’s gathering, processing and transportation expenses decreased 6.2% year over year to $1.36 per BOE. Cash G&A expenses also fell in the first quarter of 2026 to 65 cents per BOE from 72 cents in the corresponding period of 2025.
Diamondback Energy logged $933 million in capital expenditure — spending $784 million on operated drilling and completion additions to oil and natural gas properties, and $149 million on non-operated additions. The company booked $1.7 billion in adjusted free cash flow in the first quarter.
As of March 31, the Permian-focused operator had approximately $174 million in cash and cash equivalents and $13.1 billion in long-term debt, representing a debt-to-capitalization of 23.6%.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.89% due to these changes.
VGM ScoresAt this time, Diamondback has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Diamondback has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Key Takeaways WTI above $90 may make XOM's Permian output lucrative, with breakevens at $69/$63 per barrel.XOM says it's aligned to grow Permian production to 1.8MM oil-equivalent barrels this year.FANG cites 8,854 Permian locations and says wells stay economical even if oil drops to $50 a barrel. ExxonMobil Corporation (XOM - Free Report) has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
Let’s delve a little deeper into why operating in the Permian, the most prolific basin in the United States, is going to be the game-changer for the integrated energy giant. According to the data from the Federal Reserve Bank of Dallas, the breakeven price for new wells in the Midland, a sub-basin of the Permian, is $69 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $63 per barrel.
With West Texas Intermediate (“WTI”) crude trading at more than $90 per barrel, XOM’s operations in the Permian are likely going to be lucrative as the breakeven costs are lower. Investors should note that on the first-quarter earnings call, XOM mentioned that it is staying aligned with its plan to grow production in its most prolific basin to 1.8 million oil-equivalent barrels this year. Thus, high price and increased production are expected to aid XOM’s top and bottom lines.
Will FANG & CVX Will Benefit From Low Costs?Diamondback Energy, Inc. (FANG - Free Report) and Chevron Corporation (CVX - Free Report) also have a solid footprint in the Permian, where the cost of operations is low.
Diamondback Energy is a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. FANG mentioned that those wells will remain economical even if the price of oil falls to $50 per barrel.
Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques.
XOM’s Price Performance, Valuation & EstimatesShares of XOM have gained 46.2% over the past year compared with the 45.5% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA of 9.90X. This is above the broader industry average of 6.44X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past 30 days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stock to Watch: Diamondback Energy (FANG - Free Report) Founded in 2007, Midland, TX-headquartered Diamondback Energy, Inc. is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 869,000 net acres. Its activities are concentrated in the Wolfcamp, Spraberry and Bone Spring formations.
FANG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. FANG has a Momentum Style Score of A, and shares are up 6.6% over the past four weeks.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $4.91 to $19.54 per share. FANG also boasts an average earnings surprise of +5.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FANG should be on investors' short list.
The CEOs of Chevron (CVX +1.18%) and ExxonMobil (XOM +1.35%) have both warned that oil prices aren't fully reflecting the on-the-ground situation in the oil market. The latest update on that comes from the United States, where U.S. oil reserves are getting dangerously low, with a warning from refiner Phillips 66 (PSX +1.98%) about the issue. What's going on and what should investors do now?
Oil is a global commodityOil is global, so events in the Middle East affect the rest of the world. Oil exports from the U.S. market rose as flows from the Middle East were constrained, with oil users seeking supplies from wherever they were available. U.S. oil production isn't directly affected by the war, and the country is one of the world's largest oil producers, so it was a logical place to look. Companies like Devon Energy (DVN +1.95%) and Diamondback Energy (FANG +1.21%) are likely to be net beneficiaries from high oil prices and increasing demand for U.S. oil.
Image source: Getty Images.
However, the real risk in the drawdown on U.S. stockpiles is that it can only go on for so long before the high level of exports will likely need to be curtailed. At the end of May, inventory in Cushing, a key U.S. energy hub, stood at 22.4 million barrels, down four million barrels from February. Industry watchers warn that hitting 20 million barrels could pose operational challenges for energy companies.
So U.S. oil is just a temporary solution to the much bigger problem posed by the Middle East conflict. There simply isn't enough oil to go around right now, which is basically what Chevron and Exxon have been saying. Oil is a commodity, so prices rise when supply is constrained and demand is high.
Emotions are driving the oil marketThe problem is that Wall Street is usually driven by emotions over short periods of time. Chevron and Exxon are looking at the bigger picture, with time frames that look out a decade or more. Investors, given the dramatic, rapid swings in oil prices, are watching news from the Middle East conflict and reacting immediately.
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Energy industry executives are pretty clear that there is no quick solution to the current oil shortfall. It could take months to resolve the bottleneck in the Middle East, and the healing process won't actually start until the conflict ends. There's no end in sight at this point.
Investors should tread with caution. It is tempting to take an aggressive position, betting that oil prices rise materially. That's what Chevron and Exxon are warning about, after all. Pure-play drillers like Devon and Diamondback would be solid choices in such a scenario.
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However, given the disconnect between prices and industry fundamentals, it is also clear that emotions are currently more important than industry fundamentals in the oil market. Given that, it probably makes sense to hedge your bets a little. For most investors, the best option is likely to be integrated industry giants like Chevron and Exxon. They have globally diversified portfolios, exposure across the entire energy value chain, and best-in-class balance sheets. They are built from the ground up to survive the entire energy cycle, as evidenced by each having increased its dividend annually for decades.
Chevron and Exxon are ready for the worst-case scenarioNeither Chevron nor Exxon is likely to be the biggest beneficiary of high oil prices, but they will benefit materially nonetheless. So buying either one will give you good exposure to the upside in oil prices that both companies are warning about. However, they are also well-positioned to deal with low oil prices, which provides investors with an important backstop if emotionally driven oil prices move in unexpected ways.
Given the importance of oil to the global economy, most investors should have exposure to the energy sector. Companies like Chevron and Exxon are solid, long-term choices for that exposure.
In the latest close session, Diamondback Energy (FANG - Free Report) was down 2% at $194.24. The stock fell short of the S&P 500, which registered a loss of 0.26% for the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.
Shares of the energy exploration and production company have appreciated by 1.04% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.73%, and the S&P 500's gain of 0.23%.
Market participants will be closely following the financial results of Diamondback Energy in its upcoming release. On that day, Diamondback Energy is projected to report earnings of $5.6 per share, which would represent year-over-year growth of 109.74%. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, up 28.81% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.65 per share and a revenue of $17.99 billion, representing changes of +46.97% and +19.75%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.06% increase. Diamondback Energy is currently a Zacks Rank #3 (Hold).
With respect to valuation, Diamondback Energy is currently being traded at a Forward P/E ratio of 10.09. This expresses a premium compared to the average Forward P/E of 9.94 of its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 91, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
