Diamondback Energy
FANG (NASDAQ)
Diamondback Energy (FANG) emphasizes shale oil production in the Permian Basin, positioning itself as an attractive option for investors seeking reliable income with a current dividend yield of 2.77%. Despite a 1-year return of -7.27%, the company boasts a strong 5-year return of 181.18%, reflecting its potential for long-term growth. Analysts maintain a positive outlook, with a median 12-month price target of $176.00 and ratings of Overweight from major firms, suggesting confidence in its future performance.
Pros:
- Strong focus on shale oil production
- High historical returns
Cons:
- Market volatility in oil prices
- Environmental concerns
Diamondback Energy (FANG) may be suitable for investors looking for exposure to the energy sector with a focus on income through dividends, alongside potential long-term capital appreciation. While the recent performance has been underwhelming over the past year, the strong five-year returns and positive analyst outlook indicate that it could be a viable option for those willing to endure short-term volatility in pursuit of growth.