This High-Yield Dividend Stock Beat the S&P 500 in the First Half of 2024. Is It Still a Buy?
Diamondback Energy's (NASDAQ: FANG) share price rise of 29.1% in the first six months of 2024 easily outpaced the 14.5% gain of the S 500. That's great news for investors. But investing is much more about future potential than past performance. Can this outperformance continue? What conditions are needed to ensure Diamondback keeps outperforming?
The last couple of years have been a period of merger and acquisition deals for the energy sector. Examples of this include ExxonMobil's $59.5 billion acquisition of Pioneer Natural Resources and Chevron's $53 billion bid to acquire Hess.
The reasoning behind the deals is understandable. With the price of oil remaining relatively steady at a somewhat high price, oil companies are generating bumper cash flows. At the same time, the market continues to price oil stocks at a discount compared to other sectors largely over concerns about the companies' long-term future as the world continues to move away from fossil fuel usage.
Source Fool.com
Diamondback Energy Stock
With 55 Buy predictions and 1 Sell predictions Diamondback Energy is one of the favorites of our community.
At the moment Diamondback Energy has reached the predicted target price of 189 €, with a current price of 188.9 €.
