New Lifetime High Today: Diamondback Energy (FANG)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Diamondback Energy ( FANG) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamondback Energy as such a stock due to the following factors:

  • FANG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.3 million.
  • FANG has traded 277,095 shares today.
  • FANG is trading at a new lifetime high.

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More details on FANG:

Diamondback Energy, Inc., together with its subsidiaries, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Currently there are 12 analysts that rate Diamondback Energy a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Diamondback Energy has been 803,600 shares per day over the past 30 days. Diamondback Energy has a market cap of $2.9 billion and is part of the basic materials sector and energy industry. Shares are up 15.4% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Diamondback Energy as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • FANG's very impressive revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues leaped by 243.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 3200.00% and other important driving factors, this stock has surged by 173.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although FANG had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DIAMONDBACK ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.77 is weak.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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