1 Stock to Play the Iran War Energy Shock

• Diamondback Energy (FANG) is up nearly 30% over the past year and is trading near new all-time highs.
• FANG maintains a 100% “Buy” technical opinion from Barchart.
• The stock also had a dividend that yields 2.09%.
• Geopolitical risks favor FANG, but volatility warrants disciplined stop-loss strategies to protect profits.

Today’s Featured Stock

Valued at $56.78 billion, Diamondback Energy (FANG)  is an independent oil and gas exploration and production company, with its primary focus on the Permian Basin. The upstream operator focuses on growth through a combination of acquisitions and active drilling in America’s hottest and lowest-cost shale region. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FANG checks those boxes. Since the Trend Seeker issued a new “buy” on Jan. 28, FANG stock is up 24.84%. 

Barchart Technical Indicators for Diamondback Energy

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Diamondback scored a 52-week high of $204.91 on March 27.

• Diamondback has a Weighted Alpha of +67.85.
• FANG has a 100% “Buy” opinion from Barchart.
• The stock has gained 27.1% over the past 52 weeks.
• Diamondback has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $199.02 with a 50-day moving average of $173.72.
• FANG has made 9 new high and gained 15.03% over the past month.
• Relative Strength Index (RSI) is at 71.37.
• There’s a technical support level around $200.56.

Don’t Forget the Fundamentals

• $56.78 billion market capitalization.
• 16.81x trailing price-earnings ratio.
• 2.09% dividend yield.
• Revenue is expected to grow 1.98% this year and another 0.50% next year.
• Earnings are estimated to increase 2.22% this year and an additional 7.92% next year.

Analyst and Investor Sentiment on Diamondback Energy

• The Wall Street analysts followed by Barchart gave the stock 27 “Strong Buy,” 3 “Moderate Buy,” and 4 “Hold” opinions with price targets between $171 and $266.
• Value Line does not rate the stock but has price targets from $142 to $276.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is fairly valued.
• 397 investors following the stock on Motley Fool think it will beat the market while 88 think it won’t.
• 47,800 investors are following the stock on Seeking Alpha which rates it a “Hold.”
• Short interest is 3.05% of the float with 3.57 days to cover the float.

The Bottom Line on Diamondback Energy

Bad news in the Middle East is good news for energy stocks, especially ones that are totally located within the U.S. like Diamondback. The company is a good investment if there are hostilities in the Middle East, but since no one knows how long the Iran War will last, please use stop losses to protect profits.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.