When building your watch list, focus on stocks with an 80 or higher RS Rating. Diamondback Energy is one stock that just reached the mark, now earning a score of 85.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Decades of market research reveals that the market's biggest winners tend to have an 80 or better RS Rating in the early stages of their moves.
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Diamondback Energy was in a buy zone this morning after breaking past a 171.40 buy point in a flat base. It is currently trading just above the buy zone. Once a stock moves 5% or higher beyond the initial entry, it's considered out of buy range. See earning report updates below.
FANG Earnings
Although earnings and sales growth came in at -15% and -4%, respectively, in the latest report, that marked acceleration for both earnings-per-share and sales. Diamondback Energy is expected to report its next quarterly numbers on or around Feb. 20, so any new trades might be risky.
The company holds the No. 2 rank among its peers in the Oil&Gas-U.S. Exploration & Production industry group. Permian Resources is also among the group's highest-rated stocks.
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