Is Diamondback Energy Stock a Buy?

Oil stocks have been abysmal investments in recent years. Most have lost value, significantly underperforming the market.

However, one of the few bright spots has been Diamondback Energy (NASDAQ: FANG). The Permian Basin-focused oil company has produced a more than 260% total return since its initial public offering in late 2012. That has outpaced the S&P 500's more than 210% total return during that timeframe and the roughly 65% negative total return of oil stocks in the SPDR S&P Oil & Gas Exploration & Production ETF. What makes its outperformance even more impressive is that Diamondback has done it during a period when crude prices in the U.S. have lost roughly half their value. 

However, as the adage goes, past success isn't a guarantee of future performance. Given that, here's a look at the bull and bear case of whether Diamondback Energy can continue outperforming from here.

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Source Fool.com