With a market cap of $43.5 billion, Diamondback Energy, Inc. (FANG) is an independent oil and natural gas company. Based in Midland, Texas, the company focuses on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Diamondback Energy fits this criterion perfectly. The company primarily focuses on developing the Spraberry and Wolfcamp formations in the Midland Basin, as well as the Wolfcamp and Bone Spring formations in the Delaware Basin, both of which are part of the Permian Basin in West Texas and New Mexico.
Diamondback Energy’s stock dropped 30.6% from its 52-week high of $214.50. Shares of FANG have gained nearly 3% over the past three months, slightly lagging behind than the broader Dow Jones Industrials Average's ($DOWI) 3.5% increase.
On a YTD basis, FANG stock has dipped 9.1%, underperforming DOWI’s marginal increase. In addition, shares of Diamondback Energy have declined 23.1% over the past 52 weeks, notably lagging behind the Dow Jones’ 10.6% rise over the same time frame.
Despite a recent uptick, the stock has been trading mostly below its 50-day moving average since last year. Also, the stock has remained below its 200-day moving average since mid-October last year.
Diamondback Energy stock delivered a solid performance in Q1 2025 on May 5, posting revenue of $4.1 billion, marking a strong year-over-year growth of 81.8% and well ahead of Street expectations. Its adjusted EPS came in at $4.54, beating consensus estimates. However, the stock fell marginally the next day as the company trimmed its full-year oil production outlook, now expecting it to range between 857,000 BOE/d and 900,000 BOE/d, slightly lower than the previous projection.
In contrast, rival Hess Corporation (HES) has outpaced FANG stock. HES stock has risen 5.7% on a YTD basis and declined 5% over the past 52 weeks.
Despite FANG’s underperformance relative to the Dow, analysts have a bullish outlook. With 28 analysts covering the stock, the consensus rating is “Strong Buy,” and it is currently trading below the mean price target of $181.21.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
