Highly ranked oil and gas major Diamondback Energy is having a good year. FANG stock rose to an all-time high on July 17 and continues to hover near that level. On Thursday, the Relative Strength (RS) Rating for Diamondback Energy climbed to 73, up from 69 the day before. The upgraded RS Rating show its stock outperformed 73% of all stocks for price performance this past year.
Diamondback Energy earns the No. 3 rank among its peers in the 50-stock Oil&Gas-U.S. Exploration & Production industry group. Viper Energy is the No. 1-ranked stock in the group.
Diamondback Energy Profit Grew 4 Straight Quarters
Regarding top and bottom line numbers, the company has posted rising EPS growth over the last four quarters. Top line growth has also increased over the same time frame.
In the first quarter this year its numbers improved to a 10% rise in EPS on a 16% increase in sales. And last quarter they rose again as Diamondback Energy reported a 23% hike in earnings to $4.52 per share, on a 29% surge in revenue to $2.48 billion.
Decades of market research shows that the stocks that go on to make the biggest gains typically have an RS Rating of at least 80 in the early stages of their moves. See if Diamondback Energy can close the seven-point gap and hit that benchmark.
When To Sell Stocks To Lock In Profits And Minimize Losses
Midland, Texas-based Diamondback Energy hit a fresh high at 214 on July 17. It consolidated for a few weeks but it's risen again lately. FANG stock traded at about 192 Thursday afternoon, up fractionally for the day and about 7% up from an Aug. 5 low of 179.61.
It's not currently showing a potential buy point. See if the stock goes on to form a promising consolidation that could launch a new move.
Ratings Mostly Outstanding, With One Exception
Diamondback stock also has a decent 87 Composite Rating, showing overall strength. Additionally it boasts an excellent 94 EPS Rating, meaning it's in the top 6% of all stocks in IBD's database for recent and long-term profit growth. It carries a terrific A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A tops.
One yellow flag is its D- Accumulation/Distribution Rating. That shows that institutional investors like mutual funds and university funds are selling more shares than buying. Look for that rating to improve to a C or better.
IBD's proprietary Relative Strength Rating tracks technical performance using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks compares to the rest of the market.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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