Stock of the Day - May 19, 2026

Diamondback Energy (FANG)

$184.71

-$0.80 (-0.4%)

Market Cap: $51.95B

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

Diamondback Energy Bull Case

Here are some ways that investors could benefit from investing in Diamondback Energy, Inc.:

Diamondback Energy, Inc. recently reported second-quarter earnings that significantly exceeded market expectations, with actual earnings per share of $6.48 beating the consensus estimate of $6.08 by $0.40, while revenue of $5.56 billion also surpassed the projected $4.89 billion, demonstrating strong operational performance and profitability that supports the current stock price of $183.81.
The company maintains a favorable valuation profile relative to its growth, trading at a price-to-earnings ratio of 35.83, which is supported by a low beta of 0.43, indicating that the stock is less volatile than the broader market and may offer a more stable investment experience for risk-averse investors.
Analyst sentiment remains positive with a consensus rating of Moderate Buy and an average price target of $226.33, suggesting significant upside potential from the current trading level, as recent upgrades from firms like UBS Group and Wall Street Zen reflect confidence in the company's long-term trajectory.
Investors can benefit from a consistent income stream through the company's dividend, which offers a yield of 2.38% based on an annualized payout of $4.40 per share, providing a tangible return on investment alongside potential capital appreciation.
Institutional interest in the stock is robust, with 90.01% of shares owned by institutional investors, and recent filings show that major funds like Envestnet Asset Management Inc. increased their positions by 3.3% in the second quarter, signaling strong confidence from professional money managers in the company's future performance.

Diamondback Energy Bear Case

Investors should be bearish about investing in Diamondback Energy, Inc. for these reasons:

The stock has experienced recent volatility and a decline from its 52-week high of $216.90 to the current price of $183.81, with a sharp 8% drop recorded on September 16, 2026, indicating potential market uncertainty or negative sentiment that could impact short-term returns.
There is a notable pattern of insider selling, with multiple directors and executives, including Director Travis D. Stice and Director Charles Meloy, selling significant blocks of shares in recent months, which may signal that company insiders are taking profits or have less confidence in the stock's immediate upside.
The company's dividend payout ratio stands at 85.77%, which is quite high and suggests that a large portion of earnings is being distributed to shareholders rather than reinvested into the business, potentially limiting the company's ability to fund future growth initiatives or maintain financial flexibility.
Short interest in the stock remains elevated, with 7,630,501 shares shorted as of the most recent record date, representing 2.74% of the float, which indicates that a significant number of investors are betting against the stock's price appreciation and could contribute to downward pressure if they cover their positions.
The company's balance sheet shows a debt-to-equity ratio of 0.25 and a current ratio of 0.47, which is below the ideal level of 1.0, suggesting that Diamondback Energy, Inc. may face challenges in meeting its short-term obligations with its current assets, potentially increasing financial risk in a volatile economic environment.

3 Stocks to Own If Gas Prices Keep Rising

Written By Dan Schmidt on 5/16/2026

A Circle K gas station and convenience store displays fuel prices on an illuminated roadside sign at dusk.

For those who commute to work, driving by the first gas station of the day may now be a constant source of anxiety. The national average has quickly surged past $4.50 per gallon, a shock to consumers who had been paying less than $3 per gallon as recently as January. With no end to the Iran war in sight, $5-per-gallon gas seems inevitable, and U.S. consumers will be forced to make difficult travel choices this summer.

Investors also have to make some decisions; if gas prices continue to rise, which stocks are best prepared to benefit?

Hint: it requires a strategy more complex than just a portfolio of large-cap energy stocks.

The energy industry has been one of the best-performing market sectors in 2026, trailing only tech following the explosive semiconductor rally. But not every energy company benefits from high gasoline prices. Investors will want to diversify their holdings across different areas of the sector that have outsized exposure to gas prices.

Three types of companies span businesses that capture this edge: West Coast refiners, Permian shale producers, and shipping tanker operators.

Par Pacific Holdings: Small-Cap Refiner Benefitting From Widening Crack Spreads

The Pacific Coast has the highest retail gasoline prices in the United States, so that’s a great place to look for refiners that benefit from wide crack spreads. California gas prices have already breached $6 per gallon, and the region was already undersupplied before the war broke out.

One of these beneficiaries is Par Pacific Holdings Inc. (NYSE: PARR), a small-cap refiner that operates several facilities across the Pacific Northwest and Hawaii.

Despite a market cap of just over $3 billion, Par Pacific generated more than $7 billion in sales in 2025, and soaring crack spreads have it in position for another strong year.

Despite a $125 million price lag headwind from Hawaiian operations, Par Pacific still reported $1.82 billion in Q1 2026 revenue in its May 5 earnings release, including $91 million in adjusted EBITDA.

Earnings per share (EPS) of 78 cents missed the $1 expectation, but the Hawaiian Renewables venture had a successful launch, and crack spreads are expected to provide tailwinds through the summer. And despite a 40% gain in the last three months, PARR shares still trade at just 4.4x forward earnings and 0.41x sales.

Par Pacific Holdings stock chart showing support forming at the 50-day SMA.

PARR shares could offer a quality entry point for new investors right now as the price bounces off the 50-day moving average. The 50-day and 200-day MAs remain supportive of the uptrend, and the selling momentum displayed by the Relative Strength Index (RSI) appears to be slowing. If the RSI continues to reverse course, new all-time highs are likely on the horizon.

Diamondback Energy: Premium Cash Flow Generation With Oil Over $90

Diamondback Energy Inc. (NASDAQ: FANG) is one of the largest drillers in the Permian Basin, extracting crude oil, natural gas, and natural gas liquids (NGLs) from wells in Texas and New Mexico.

Diamondback is a direct beneficiary of higher crude prices; in Q4 2025, management projected that the company could generate more than $5.5 billion in free cash flow if oil prices reached $70 per barrel.

Now that WTI crude prices have eclipsed $90, Diamondback is positioned to outperform even its most optimistic cash flow projections.

In its Q1 2026 earnings report, the company beat top and bottom-line expectations, upped its dividend, and raised full-year oil production guidance. It also plans to put two or three new rigs into production, and the extra cash will help the company pay down debt and increase future dividends and share buybacks.

Diamondback Energy stock chart showing support holding despite volatile trading.

FANG shares have been volatile over the last few months, but the stock is still up more than 30% year-to-date (YTD). Support at the 50-day MA has held whenever the rally shows signs of pulling back, and shares are once again bouncing off this level as the RSI moves back into bullish territory.

Scorpio Tankers: Hormuz Closure Causes Volatile Shipping Rate Increases

The thesis behind Scorpio Tankers Inc. (NYSE: STNG) is fairly straightforward: if companies are forced to reroute away from the Strait of Hormuz, shipping day rates will surge as product is sourced from farther afield.

Supply dislocations often create outsized earnings opportunities for shippers, as oil and gas companies have no choice but to pay astronomical rates, which then trickle directly into earnings.

Investors are already seeing this scenario play out at Scorpio. The company reported Q1 2026 revenue of over $312 million in its May 6 earnings release, up more than 46% year-over-year (YOY).

Scorpio only generated $938 million in total 2025 sales, so revenue is already well ahead of last year’s performance, and the supply disruption is likely to last throughout the year.

Scorpio Tankers stock chart displaying healthy support at the 50-day SMA.

A resumption of normal Hormuz traffic would be a headwind to STNG shares as shipping rates would quickly normalize. But until that catalyst occurs, the stock will likely remain in the uptrend that’s boosted it more than 60% YTD.

Support remains strong at the 50-day MA, and the Moving Average Convergence Divergence (MACD) indicator shows that bullish momentum is once again simmering.

← Previous Stock of the Day Next Stock of the Day →