Diamondback Energy
Independent oil and gas producer Diamondback Energy Inc. (NASDAQ: FANG) has seen its share price rise by more than 17% in the past 12 months, including a gain of around 5.5% for the year to date. Diamondback reports second-quarter results after markets close on Monday.
The stock jumped in April when reports that Exxon might buy Pioneer Natural Resources led to speculation about Diamonback’s own potential as an acquisition target. Falling crude prices have cooled M&A prospects for now, but Diamondback, which holds a solid position in the Permian Basin, is a reasonable target for some of the big guys if crude prices rebound to north of $90 or so.
Analysts are strongly bullish on Diamondback, with 24 of 29 brokerages covering the stock having a Buy or Strong Buy rating. The other five rate it at Hold. At a share price of around $144.00, the upside potential based on a median price target of $165.00 is 14.6%. At the high price target of $207.00, the upside potential is 43.8%.
Second-quarter revenue is forecast at $1.89 billion, down 1.7% sequentially and down 31.8% year over year. Adjusted EPS are expected to come in at $3.89, down 5.2% sequentially and by 45.0% year over year. For the full 2023 fiscal year, analysts expect Diamondback to post EPS of $19.71, down 28.8%, on revenue of $7.93 billion, down 17.8%.
Diamondback stock trades at 8.5 times expected 2023 EPS, 7.4 times estimated 2024 earnings of $19.71 and 7.5 times estimated 2025 earnings of $29.45 per share. The 52-week trading range is $110.97 to $168.95. Diamondback pays an annual dividend of $9.09 (yield of 6.22%).
Pfizer
Drugmaker Pfizer Inc. (NYSE: PFE) has posted a share price drop of 30% over the past 12 months, essentially all of it coming in 2023. Pfizer reports earnings before Tuesday’s opening bell.
Last week a tornado caused serious damage to the company’s drug manufacturing plant in North Carolina. The Federal Trade Commission also asked for more information related to Pfizer’s announced $43 billion acquisition of Seagen. The company’s revenue and profits have been distorted by the pandemic years when sales of its COVID-19 vaccine caused both revenue and profits to soar.
Of 26 analysts, 15 rate the Dow stock a Hold, while 11 have a Buy or Strong Buy rating. At a share price of around $36.00, the upside potential based on a median price target of $44.00 is 22.2%. At the high target of $75, the upside potential is 108.3%.
Second-quarter revenue is forecast at $13.46 billion, down 26.4% sequentially and 51.5% lower year over year. Adjusted EPS are pegged at $0.59, down 52.4% sequentially and by 71.1% year over year. For the full 2023 fiscal year, analysts expect Pfizer to report EPS of $3.30, down 49.8%, on sales of $67.35 billion, down 33.9%.
Pfizer stock trades at 11.0 times expected 2023 EPS, 10.3 times estimated 2024 earnings of $3.53 and 10.0 times estimated 2025 earnings of $3.62 per share. The 52-week range is $35.35 to $54.93. Pfizer pays an annual dividend of $1.64 (yield of 4.46%). Total shareholder return for the past 12 months was negative 26.75%.
Originally published at 24/7 Wall St.
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