Diamondback Energy

FANG

Market cap $43.7B

As cracks have started to show in the S&P 500 in the past several weeks—following an impressive rally since the tariff-linked plunge in early April—investors might turn to companies bucking the trend. A handful of firms have seen volatility throughout the year but are poised to end 2025 on a high note.

Diamondback Energy is a low-cost U.S. oil producer with limited geopolitical risk. The company offers a stable dividend and strong free cash flow potential.

Energy sector fundamentals are strengthening as both demand and supply are increasingly supported by governments and major organizations, reversing years of pessimism. Oil and natural gas demand is projected to grow through 2050, with the IEA and Goldman Sachs revising their outlooks upward, especially as renewables adoption slows. Midstream companies like WMB, KMI, TRP, ET, DT, and MPLX are poised to benefit from infrastructure expansion, alleviating supply bottlenecks and supporting future growth.

TipRanks' ranking service highlights three dividend-paying stocks, including Diamondback Energy and Permian Resources

Diamondback Energy has carried out a series of M&A transactions that allowed it to boost oil & gas production in circumstances that appear beneficial. FANG has demonstrated successful management in its policy of increasing proven reserves with a 44% CAGR growth since 2015. Currently, the company's EV/EBITDA and P/CF ratios are around 6.47x and 4.17x respectively, which is interesting especially given the M&A process that is still consolidating in terms of the results.

FANG tops Q3 earnings and revenue estimates on stronger output and lower costs, while lifting 2025 production guidance.

Oil and gas stocks have struggled this year due to lower oil prices. Diamondback's relatively low cost of production means it can generate substantive cash flows for investors.

While the top- and bottom-line numbers for Diamondback (FANG) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Diamondback Energy remains a strong buy, driven by best-in-class execution, robust assets, and an attractive valuation despite lower oil prices. FANG delivered strong Q3 results with significant improvements in free cash flow per share YTD, disciplined capital spending, and strategic non-core asset sales strengthening the balance sheet. Management prioritizes dividends, buybacks, and debt reduction while remaining selective on M&As, ensuring flexibility amid macroeconomic uncertainty.

Bank of America has identified several stocks that it believes are well-positioned following the latest earnings season, citing strong fundamentals and attractive entry points across multiple sectors. The Wall Street investment bank named companies such as Palantir Technologies, Wayfair, Intapp, Diamondback Energy, and AerCap Holdings as standout opportunities.