Pro Picks: 4 Crackling Energy Plays, Led by Diamondback

By Investing.com (Thomas Monteiro)Stock MarketsJun 09, 2023 23:05

ng.investing.com/analysis/pro-picks-4-crackling-energy-plays-led-by-diamondback-173363

Pro Picks: 4 Crackling Energy Plays, Led by Diamondback

By Investing.com (Thomas Monteiro) | Jun 09, 2023 23:05

Saved. See Saved Items.

This article has already been saved in your Saved Items

US500

-1.64%

Add to/Remove from a Portfolio

+0.28%

Add to/Remove from a Portfolio

FANG

-1.00%

Add to/Remove from a Portfolio

Wall Street chatter says crude oil prices may be finally finding a bottom. That’s good news for energy stocks, which have been getting slammed amid oil’s lengthy downtrend. As prospects brighten for the energy patch, what stocks should you consider for your watch list - or even your portfolio?

We’ve narrowed it down to four VIP Pro Picks, which get the nod from not only InvestingPro’s sophisticated stock-picking tools, but Street analysts as well. And among these is oil-and-gas name Diamondback Energy (NASDAQ:FANG).

Importantly, like all Pro Picks, this week’s selections have all been stamped with an InvestingPro financial health score of 2.75 or more out of 5, which for the last 7 years has indicated outperformance vs. the S&P 500. That score indicates firm financials: top-notch earnings, cash flow, and growth vs. peers.

With an impressive overall health score of 3.08, Diamondback Energy outperforms the vast majority of peers on profit margins and its two- and five-year return on invested capital, as InvestingPro screeners reveal. And Diamondback vastly outstrips just about every other company in the sector when it comes to its revenue trend score - as well as its mighty cumulative earnings growth per share over the past three years.

You also get robust cash flow metrics with this company - a sky-high ratio of cash flow to current liabilities, and cash flow that comes in comfortably over its total debt. All that helps fund its dividend, which yields at an incredible 7.4%. Crucially, Diamondback’s forward price-to-earnings ratio is at a bargain basement 7.4x, and analysts consider it undervalued: Wall Street targets put upside at over 25% above the current stock price.

Put it all together, and Diamondback Energy looks particularly well positioned to run.

Want to see the full list of this month's Pro Picks poised to beat the market? Start a 7-day free trial to unlock must-have insights and data. And while you’re here, dig into InvestingPro’s wealth of tools and screeners to begin building a lucrative portfolio.

If you're already an InvestingPro subscriber, this week's full Pro Picks list is available here.

Data as of June 8, 2023.

InvestingPro | Unlock the Market's Hidden Gems

Instacart's Hot IPO Turns Cold Overnight: Buying Opportunity or... By David Wagner - Sep 21, 2023

After an initial success, Instacart's IPO turned out to be a relative flop The stock opened up over 40% on the day of its IPO but reversed its gains the following day Instacart...

3 Stocks Are Set to Leave Dow Jones Index - But Is That a Bad Thing... By Ismael De La Cruz - Sep 21, 2023 1

In theory, stocks included in indexes tend to rise, while those excluded tend to fall However, General Electric stock gained around 50% after being ousted, and Walgreens Boots...

Could Nvidia Reach $900 by 2024? By Antonio Ferlito - Sep 21, 2023

NVIDIA Corporation (NASDAQ:NVDA) has jumped an impressive 305% since its October lows. Although many perceive Nvidia as overvalued, thinking that the stock will collapse, they have...

Add a Comment

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically.
Use standard writing style. Include punctuation and upper and lower cases.
NOTE: Spam and/or promotional messages and links within a comment will be removed
Avoid profanity, slander or personal attacks directed at an author or another user.
Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read and understood Investing.com Nigeria's comment guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d72-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d72-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d72-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

CBN

18.75%

Sep 26, 2023

BOE

5.25%

Sep 21, 2023

ECB

4.50%

Oct 26, 2023

FED

5.50%

Sep 20, 2023

SNB

1.75%

Sep 21, 2023

RBA

4.10%

Oct 03, 2023

BOC

5.00%

Oct 25, 2023

RBNZ

5.50%

Oct 04, 2023

BOJ

-0.10%

Sep 22, 2023

CBR

13.00%

Oct 27, 2023

RBI

6.50%

Oct 06, 2023

PBOC

3.45%

BCB

12.75%

Sep 20, 2023

NSE 30	2,511.83	-5.14	-0.20%
NSE All Share	68,271.14	-64.58	-0.09%
US 30	34,066.3	-4.1	-0.01%
US 500	4,328.3	-1.7	-0.04%
FTSE 100	7,678.62	-53.03	-0.69%
DAX	15,571.86	-209.73	-1.33%
South Africa Top 40	67,430.92	-1564.39	-2.27%

Brent Oil	93.49	+0.24	+0.26%
Crude Oil WTI	89.88	+0.25	+0.28%
Gold	1,941.75	+2.15	+0.11%
Silver	23.727	+0.040	+0.17%
Copper	3.6905	-0.0008	-0.02%
London Cocoa	2,996.00	+0.00	+0.00%
London Wheat	190.20	+1.20	+0.63%

Nigeria 10Y	14.563	-0.005	0.00%
Nigeria 2Y	12.810	-0.004	0.00%
U.K. 10Y	4.3235	+0.0205	+0.48%
Germany 10Y	2.7325	-0.0145	-0.53%
U.S. 10Y	4.504	+0.022	+0.49%
U.S. 5Y	4.617	+0.001	+0.03%
U.S. 2Y	5.140	-0.008	-0.17%

Access Bank	10.00	+0.00	+0.00%
Zenith Bank	33.00	0.00	0.00%
UBA	17.00	-0.10	-0.58%
FBN Holdings	16.85	-0.15	-0.88%
Guaranty Trust Holding	35.80	+0.40	+1.12%
Sterling Bank	3.770	-0.030	-0.79%
Dangote Cement	335.10	-29.90	-8.19%

Pro Picks: 4 Crackling Energy Plays, Led by Diamondback

Related Articles