Some of my students have asked me about the
FANG stock. So here is my analysis.Fundamentally speaking, Diamondback Energy delivered a solid earnings beat this Q, with revenue and EPS exceeding expectations. Margins remain strong, free cash flow is healthy, and the company continues aggressive capital returns through dividends and substantial share buybacks.
Post-Earnings, the stock is attempting to reverse its prior downtrend. Operational performance appears stable, and reduced CAPEX suggests a disciplined, defensive stance prioritising cash flow over expansion.
Looking at the 1D chart, despite the channel breakout, the medium-term structure is not yet fully supportive of a buy. The 50EMA remains below the 200EMA, signalling an incomplete trend reversal. Price is improving, but confirmation is still lacking. Would wait for the 50EMA to cross over the 200EMA followed by consistent price action above the 50EMA, before thinking of any entry.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.