Should You Choose Diamondback Energy Stock For Short Term Gains?

Actions of Diamondback Energy (NASDAQ: FANG) reached pre-Covid levels aided by a strong recovery in benchmark oil prices and growing transport demand. However, the recent drop earlier this month was sparked by fears of another infectious wave with the Omicron variant. Diamondback Energy is an independent exploration and production company with onshore oil and gas reserves in the Permian Basin and West Texas. Given the likelihood of increased production volumes in the United States despite the uncertain demand environment due to the coronavirus crisis, Trefis believes the stock has a strong chance of increasing after the recent decline.

So, is Diamondback Energy stock likely to recover in the weeks and months to come or is a decline more likely? According to machine learning engine Trefis which analyzes historical movements in stock prices, the FANG share has a 58% chance to rise over the next month (21 trading days). See our analysis Risk of increased Diamondback energy stock for more details.

Five days: FANG 0.8%, vs S&P 500 -0.06%; Outperformed market (46% probability of event)

  • Diamondback Energy stock gained 0.8% in a five-day trading period ending 12/21/2021, against the larger market (S & P500) which fell 0.06% over the same period.
  • Returns of 0.8% or more on 5 day period 1057 times out of 2307 (46%); Inventories increased over the next five days in 576 of those 1,057 cases (54%).

Ten days: FANG -9.2%, vs S&P 500 -1.1%; Underperformed market (10% probability of event)

  • Diamondback Energy stock has fallen 9.2% in the last ten trading days (two weeks), compared to the larger market (S & P500) which has also fallen 1.1%.
  • Returns of -9.2% or less on 10 day period 241 times out of 2302 (10%); Inventories increased over the next 10 days in 144 of these 241 cases (60%).

Twenty-one days: FANG 2.7%, vs S&P 500 -1.2%; Outperformed market (48% probability of event)

  • Diamondback Energy stock has gained 2.7% in the last twenty-one trading days (roughly a month), compared to the larger market (S & P500) which has fallen 1.2%.
  • Returns of 2.7% or more on 21 day period 1108 times out of 2291 (48%); Inventories increased over the next 21 days in 647 of these 1,108 cases (58%).

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