With a market cap of $42.3 billion, Diamondback Energy, Inc. (FANG) is an independent oil and gas company focused on the acquisition, development, and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company targets the prolific Spraberry, Wolfcamp, and Bone Spring formations across the Midland and Delaware basins.

Shares of Diamondback Energy have underperformed the broader market over the past 52 weeks. FANG stock has declined 28.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.1%. Moreover, shares of FANG are down 14.6% on a YTD basis, compared to SPX's marginal gain.

Looking closer, the energy exploration and production company has lagged behind the Energy Select Sector SPDR Fund's (XLE) 9.9% decline over the past 52 weeks. 

Despite beating Q1 2025 adjusted EPS estimates with $4.54 and reporting revenue of $4.05 billion on May 5, Diamondback’s shares fell marginally the next day due to a lowered 2025 production guidance of 857,000 BOE/d - 900,000 BOE/d and a reduced capital spending forecast of $3.4 billion - $3.8 billion. Additionally, the average realized oil price dropped 5.5% year-over-year to $70.95 per barrel, and production slightly missed estimates at 850,656 BOE/d. 

For the fiscal year ending in December 2025, analysts expect FANG's adjusted EPS to dip nearly 20% year-over-year to $13.26. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.

Among the 28 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 23 “Strong Buy” ratings, three “Moderate Buys,” and two “Holds.”

On May 13, Piper Sandler analyst Mark Lear lowered Diamondback Energy's price target to $225, maintaining an “Overweight” rating.

As of writing, FANG is trading below the mean price target of $183.11. The Street-high price target of $234 implies a potential upside of 66.8%.