Is FANG a good stock to buy? We came across a bullish thesis on Diamondback Energy, Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on FANG. Diamondback Energy, Inc.’s share was trading at $ 191.48 as of May 29th. FANG’s trailing and forward P/E were 195.39 and 8.58 respectively according to Yahoo Finance.
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Diamondback Energy Inc. (FANG), valued at $56.7 billion, is an independent oil and gas exploration and production company primarily focused on the Permian Basin, where its low-cost acreage and high-margin production profile support resilient cash flows. The company pursues growth through a combination of active drilling and disciplined acquisitions, leveraging its position in one of the most productive shale regions in the United States.
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FANG is benefiting from rising crude oil prices, which are expanding upstream margins and strengthening earnings power, while sustained production growth further reinforces its operational momentum. Geopolitical tensions in the Middle East have added an additional tailwind to oil prices, indirectly supporting US-centric producers such as Diamondback that are less exposed to international disruption risk.
From a technical standpoint, the stock has demonstrated strong momentum, with a Trend Seeker “buy” signal issued on January 28, since which the stock has risen approximately 24.8%. It also carries a Weighted Alpha of +67.8 and has gained about 27.1% over the past 52 weeks, recently trading near $199.02 versus a 50-day moving average of $173.72, alongside multiple new highs and a technical support level around $200.56.
Market sentiment remains supportive, with Wall Street analysts assigning 27 “Strong Buy,” 3 “Moderate Buy,” and 4 “Hold” ratings, and price targets ranging between $171 and $266, indicating continued upside potential. Overall, Diamondback Energy presents a compelling bullish setup driven by strong fundamentals, favorable commodity pricing, and robust technical momentum, with potential for further rerating if oil prices remain elevated going forward outlook.
Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, which highlighted Permian Basin low-cost assets, diversified segments, and carbon capture positioning via Stratos. OXY’s stock price has appreciated by approximately 31.57% since our coverage. @MoneyShow shares a similar view but emphasizes Diamondback Energy’s momentum-driven growth, technical strength, and oil price tailwinds versus OXY’s restructuring and debt narrative.
Diamondback Energy, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held FANG at the end of the first quarter which was 46 in the previous quarter. While we acknowledge the risk and potential of FANG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FANG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
