FANG stock: buy or sell
Updated on:
Jan 27th, 2021
2
FANG stock brief
- Diamondback Energy stock sank -2.80% to close at $59.61 on the stock market on Tuesday, and broke a streak of 4 sessions in green.
- The stock is configuring an uptrend pattern since last October, when it bottomed at $23.36. This rally marked a 155.18% gain
- Raymond James posted a neutral rating for Diamondback Energy on Tuesday, with a target of $91.00
Should I buy Diamondback Energy stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $FANG stock a buy?
Currently, Diamondback Energy stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $FANG will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Diamondback Energy stock?
How to know when is it time to sell Diamondback Energy stock?. Trading strategies prevent us from making impetuous decisions based on our feelings or the noise that surrounds the market. When selling, as well as buying, detailed setups are very easy to follow but are only valid for selling shares you already own, not for selling short Diamondback Energy stock
A guiding principle is that you should not keep an open trade that produces higher than expected losses at the time of purchase. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Diamondback Energy stock?
In the current situation of Diamondback Energy there is not any eligible sell setup, so Diamondback Energy stock holders with operations in green can keep their positions
Diamondback Energy ratings
In the last month, 11 analyst ratings were published for Diamondback Energy. General sentiment is bullish, with 8 out of 11 posting positive outlooks
| Brokerage firm | Rating |
|---|---|
| Dec 28th, 2020 | |
| Northland Securities | Buy |
| Jan 6th, 2021 | |
| Truist | Neutral |
| Jan 7th, 2021 | |
| KeyCorp | Buy |
| Jan 13th, 2021 | |
| Siebert Williams Shank | |
| Jan 14th, 2021 | |
| Barclays | |
| KeyCorp | Buy |
| Royal Bank of Canada | Buy |
| Jan 20th, 2021 | |
| Cowen | Buy |
| Morgan Stanley | Buy |
| Jan 21st, 2021 | |
| KeyCorp | Buy |
| Jan 26th, 2021 | |
| Raymond James | Buy → Neutral |
Diamondback Energy stock analysis
Since last October, Diamondback Energy has been drawing an uptrend that by now marked an amazing 155.18%. Rising highs and lows can be seen easily on a chart and how price action offered very few buy points on the breakouts. Latest pullback was in mid-December, when price bounced at $42.00. Currently, it moves in a consolidation between its last top ($64.90) and its last bottom ($42.00)
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on January 13, the price sliced by 5.00%
Relative strength index
The RSI dropped below the overbought level of 70 on Monday after just crossing to the overbough zone for a single day (weak signal). The RSI value on Tuesday was 60.57
Diamondback Energy stock price history
Diamondback Energy IPO was on Oct 12th, 2012 priced at $17.02 per share1. Since then, FANG stock surged by 250.24%, with an average of 31.28% per year. If you had invested $1,000USD in Diamondback Energy stock on Oct 2012, it would be valued $3,502.35 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Diamondback Energy stock
Nobody can predict how much a stock will be priced in the future. Banks and financial organisations publish their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price target based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and usually. If you are a small trader you should not invest based on these price targets.
Averaging all price targets exposed below, the estimated price for Diamondback Energy stock is $68.45. That is a 14.83% than the current price ($59.61).
| Brokerage firm | Price target |
|---|---|
| Dec 28th, 2020 | |
| Northland Securities | $50.00 → $60.00 |
| Jan 6th, 2021 | |
| Truist | $60.00 → $65.00 |
| Jan 7th, 2021 | |
| KeyCorp | $54.00 → $58.00 |
| Jan 13th, 2021 | |
| Siebert Williams Shank | $62.00 |
| Jan 14th, 2021 | |
| Barclays | $46.00 → $68.00 |
| KeyCorp | $58.00 → $65.00 |
| Royal Bank of Canada | $67.00 → $72.00 |
| Jan 20th, 2021 | |
| Cowen | $60.00 → $75.00 |
| Morgan Stanley | $65.00 → $71.00 |
| Jan 21st, 2021 | |
| KeyCorp | $65.00 → $66.00 |
| Jan 26th, 2021 | |
| Raymond James | $50.00 → $91.00 |
Earnings and financials
Earnings event was hosted by Diamondback Energy ($FANG) last November after releasing the financial report. FANG beat Wall St estimates and posted of $0.62, that is a 67.57% surprise versus the previous estimates of $0.37. Despite this, reported revenues of $720.0 million were in line with analysts predictions.
This compares to Earnings of $1.47 per share same quarter last year, so current EPS means a loss of -57.82%. Sales dropped a -26.32% on an annualized basis in the , from $9.3B to $6.8B last quarter.FANG ($FANG) releases quarterly earnings report mid next February. Forecasted for this quarter is $0.81, compared to $0.62 that was reported for Q3.
Diamondback Energy performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Diamondback Energy ($FANG) | 24.80% | 111.30% | 53.40% |
Please read:
The viewpoints published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning motives onlyFANG summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $62.32 |
| Close | $59.61 |
| Day range | $59.34 - $64.11 |
| Previous close | $61.33 |
| Session gain | -2.80% |
| Average true range | $4.44 |
| 50d mov avg | $48.59 |
| 100d mov avg | $39.12 |
| 200d mov avg | $39.88 |
| Earnings date | February 16th, 2021 |