Diamondback Energy Stock: 7 Straight Red Days, Down 16%
Diamondback Energy (FANG) stock has fallen for 7 consecutive trading days, losing 16.0% over that stretch. That erased about $9.5 billion from the company’s market value, which now stands at about $49.9 billion. The stock closed at $178.08 on Tuesday, November 10, 16.0% below its 52-week high of $212.08 and 29.0% above its low of $138.09.
The Streak Next To The S&P 500
Returns for FANG and the S&P 500 over the streak and the periods around it, all ending Tuesday, November 10 and including dividends:
| Return Period | FANG | S&P 500 |
|---|---|---|
| 1 Day | -0.1% | -0.4% |
| 7 Days (Current Streak) | -16.0% | -0.8% |
| 1 Month (21 Trading Days) | -8.7% | -3.6% |
| 3 Months (63 Trading Days) | -10.8% | -2.7% |
| Year To Date | 20.5% | 10.9% |
| 1 Year (252 Trading Days) | 27.0% | 13.1% |
Is This Move About Diamondback Energy Or The Market?
Over the same 7 trading days, the S&P 500 returned -0.8% including dividends, so the slide is mostly Diamondback Energy’s own story rather than the market’s. No other S&P 500 stock is currently on a losing streak of 7 days or longer. Over the past three months the stock is down 10.8%, a window that includes the streak; over the other 56 sessions of that window it was up 6.2%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 20.8% over the last twelve months, against a median of 20.8% for S&P 500 Energy stocks; and its operating margin is 40.1%, versus a median of 23.3%. At least one of the last four quarters was a loss, so a price-to-earnings multiple would not be a meaningful yardstick here. The read is mixed.
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