Should You Pick Diamondback Energy Stock For Near Term Gains?

FANG: Diamondback Energy logo
FANG
Diamondback Energy

The shares of Diamondback Energy (NASDAQ: FANG) have reached pre-Covid levels assisted by a strong recovery in benchmark oil prices and rising transportation demand. However, the recent dip earlier this month was triggered by fears of another infectious wave by the Omicron variant. Diamondback Energy is an independent exploration and production company with onshore oil & gas reserves in the Permian Basin and West Texas. Given the likelihood of rising production volumes in the U.S. despite the uncertain demand environment due to the coronavirus crisis, Trefis believes that the stock has a strong chance of a rise after the recent drop.

So is Diamondback Energy stock likely to recover in the coming weeks and months or is a decline more likely? Per the Trefis machine learning engine which analyzes historical stock price movements, FANG stock has a 58% chance of a rise over the next month (21 trading days). See our analysis Diamondback Energy Stock Chance of Rise for more details.

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Five Days: FANG 0.8%, vs. S&P 500 -0.06%; Outperformed market (46% event probability)

  • Diamondback Energy stock gained 0.8% over a five-day trading period ending 12/21/2021, compared to the broader market (S&P500) which declined 0.06% over the same period.
  • Returns of 0.8% or higher over 5-day period in 1057 times out of 2307 (46%); Stock rose in the next five days in 576 of these 1057 instances (54%).

Ten Days: FANG -9.2%, vs. S&P 500 -1.1%; Underperformed market (10% event probability)

  • Diamondback Energy stock declined 9.2% over the last ten trading days (two weeks), compared to the broader market (S&P500) which also declined 1.1%.
  • Returns of -9.2% or lower over 10-day period in 241 times out of 2302 (10%); Stock rose in the next 10 days in 144 of these 241 instances (60%).

Twenty-One Days: FANG 2.7%, vs. S&P 500 -1.2%; Outperformed market (48% event probability)

  • Diamondback Energy stock gained 2.7% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which declined by 1.2%.
  • Returns of 2.7% or higher over 21-day period in 1108 times out of 2291 (48%); Stock rose in the next 21 days in 647 of these 1108 instances (58%).

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Dec 2021
MTD [1]
2021
YTD [1]
2017-21
Total [2]
 FANG Return 3% 117% 4%
 S&P 500 Return -1% 24% 107%
 Trefis MS Portfolio Return 0% 45% 289%

[1] Month-to-date and year-to-date as of 12/22/2021
[2] Cumulative total returns since 2017

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