Chart Of The Day: DiamondBack Energy - Proves The Analysts Wrong

  • 100% technical buy signals
  • 18 new highs and up 13.38% in the last month
  • 56.03+ Weighted Alpha

The Chart of the Day belongs to the oil and gas E&P stock Diamondback Energy (FANG). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 2/ 12 the stock gained 25.47%.

(Click on image to enlarge)

FANG Price vs Daily Moving Averages

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 56.03+ Weighted Alpha
  • 44.27% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 18 new highs and up 13.38% in the last month
  • Relative Strength Index 79.89%
  • Technical support level at $205.14
  • Recently traded at $208.26 with 50 day moving average of $183.41

Fundamental Factors:

  • Market Cap $37.15 billion
  • P/E 11.45
  • Dividend yield 3.90%
  • Revenue expected to increase 7.40% this year and another 70.90% next year
  • Earnings estimated to increase 1.30% this year and an additional 9.70% next year and continue to compound at an annual rate of 2.00% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts have 30 strong buy, 9 buy  and 1 hold recommendation in place on the stock
  • Analysts price targets are between $154 and $257 with a mid-point of $208
  • Value Line rated the stock a below average 4 and has a price target of $160 for a 25% loss
  • CFRA's MarketScope Advisor rates the stock a 3 star hold with a price target of $183
  • MorningStar give the stock a below average 2 star rating with a Fair Value estimate of $172
  • 42,630 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten 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.

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