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MARKETS LIVE BLOG:

STOCKS WOBBLE AMID EARNINGS FLOOD, WITH BIG TECH ON DECK

Spotify soars on record profit, strong guidance

Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Diamondback Energy (FANG)

Founded in 2007, Midland, TX-headquartered Diamondback Energy, Inc. is an independent oil and gas exploration & production company with its primary focus on the Permian Basin, where it has more than 490,000 net acres. Its activities are concentrated in the Wolfcamp, Spraberry and Bone Spring formations.

FANG sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Oil and Gas - Exploration and Production - United States industry's P/E of 10.4X, shares of Diamondback Energy are trading at a forward P/E of 10.7X. FANG also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 7.3X, and a Price/Sales ratio of 4.2X.

A company's earnings performance is important for value investors as well. For fiscal 2024, three analysts revised their earnings estimate higher in the last 60 days for FANG, while the Zacks Consensus Estimate has increased $0.10 to $19.05 per share. FANG also holds an average earnings surprise of 3.4%.

FANG should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research