3 Large-Cap Stocks Wall Street Thinks Will Rally More Than 30%

NASDAQ: FANG | Diamondback Energy Inc. News, Ratings, and Charts

FANG – The stock market volatility is not expected to lessen anytime soon, with soaring inflation and the Fed’s aggressive stance to fight it. Despite the market uncertainties, Wall Street analysts see significant upside in large-cap stocks Diamondback Energy (FANG), Marathon Petroleum (MPC), and E.ON SE (EONGY). Keep reading….

After suffering its worst first half in more than 50 years, the stock market started the second half of the year on a positive note. On July 1, the Dow Jones Industrial Average and the S&P 500 rose 1.1% each, while the Nasdaq Composite was up by 0.9%.

The Fed’s hawkish stance on fighting the multi-decade high inflation raises the odds of the economy tipping into a recession. Therefore, it could be wise to consider investing in large-cap stocks that typically survive a market slump better than small and mid-cap stocks because of the underlying companies’ substantial market reach, pricing power, and liquidity.

Wall Street analysts expect large-cap stocks Diamondback Energy, Inc. (FANG), Marathon Petroleum Corporation (MPC), and E.ON SE (EONGY) to rally more than 30% from their current price levels. So, these stocks could be excellent additions to your watchlist.

Diamondback Energy, Inc. (FANG)

FANG is an independent oil and natural gas company that acquires, develops, and explores unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. The stock has a market capitalization of $21.28 billion.

In June, FANG announced an enhancement in its capital return program. Beginning from the third quarter of this year, the company intends to increase its return of capital commitment to at least 75% of Free Cash Flow.

Additionally, it intends to increase its base dividend to $3.00 per common share annually, beginning with the second quarter of 2022. This reflects on the company’s shareholder return ability.

In May, FANG and Rattler Midstream LP (RTLR) announced that they had entered into a definitive agreement for FANG to acquire all of the publicly held common units representing the limited partner interests in RTLR not already owned by the company and its subsidiaries. This is expected to benefit the companies from the scale of the combined firm.

FANG’s total revenue increased 103.4% year-over-year to $2.41 billion in the first quarter ended March 31. Its income from operations grew 190.7% from the year-ago value to $1.66 billion, while its net income improved 260.1% year-over-year to $803 million over the period. The company’s earnings per common share increased 227.8% from its year-ago value to $4.36.

The consensus EPS estimate of $6.55 for the fiscal second quarter (ended June 2022) indicates a 172.9% improvement year-over-year. The consensus revenue estimate of $2.37 billion for the same quarter reflects a 41.3% increase from the same period last year.

The company has an impressive earnings surprise history, as it surpassed the consensus EPS estimates in each of the trailing four quarters.

The stock has gained 23.6% over the past year and 12.4% year-to-date to close its last trading session at $121.21.

The 17 Wall Street analysts that rated FANG have rated it Buy. The 12-month median price target of $187.88 indicates a 55% potential upside. The price targets range from a low of $148.00 to a high of $236.00.

Marathon Petroleum Corporation (MPC)

MPC operates as an integrated downstream energy company. It operates in two segments, Refining & Marketing and Midstream. The company has a market capitalization of $45.70 billion.

In June, Archer Daniels Midland Company (ADM) and MPC announced that they had broken ground at their North Dakota soybean processing facility. About this, Dave Heppner, MPC’s senior vice president of Strategy and Business Development, said, “The Green Bison Soy Processing facility will help us further optimize our renewable feedstock sourcing, and we are excited about the opportunity to partner with ADM and the state of North Dakota as we move forward with the development of this facility.”

On April 27, MPC declared a dividend of $0.58 per share on its common stock, which was payable to shareholders on June 10. This reflects upon the company’s ability of cash generation and shareholder returns.

In the first quarter ended March 31, MPC’s total revenues and other income increased 67.7% year-over-year to $38.38 billion. Its net income rose to $1.17 billion, representing an increase of 1,731.3% year-over-year. The company’s net income per share increased 502.7% from the previous-year quarter to $1.49.

Analysts expect MPC’s revenue for the quarter ended June 2022 to be $42.83 billion, indicating 43.6% year-over-year growth. The company’s EPS for the same quarter is expected to increase 778.8% from the prior-year quarter to $5.89. Moreover, MPC has topped consensus EPS estimates in each of the trailing four quarters, which is impressive.

MPC has gained 38.3% over the past year and 32% year-to-date to close its last trading session at $84.48.

Of the 12 Wall Street analysts that rated MPC, ten have rated it Buy, and two have rated it Hold. The 12-month median price target of $111.08 indicates a 31.5% potential upside. The price targets range from a low of $94.00 to a high of $135.00.


EONGY operates as an international energy company that operates through two segments Energy Networks and Customer Solutions. The company is headquartered in Essen, Germany. EONGY has a $22.41 billion market capitalization.

On March 23, EONGY announced that it had recently issued two green bond tranches with a combined volume of €1.50 billion($1.56 billion). The transaction is expected to cover a majority of the company’s anticipated refinancing needs for 2022.

For the first quarter of 2022, EONGY’s sales increased 60.3% year-over-year to €29.51 billion ($30.76 billion). Its cash provided by financing activities rose 309.1% from the year-ago value to €3.49 billion ($3.64 billion). Its EPS grew 3.2% from the prior-year quarter to €0.32.

The consensus revenue estimate of $84.64 billion for the fiscal year 2023 indicates a 4.3% year-over-year increase.

EONGY’s stock has gained 2.4% intraday to close its last trading session at $8.58.

The Wall Street analyst that rated the stock has rated it Buy. The 12-month median price target of $13.56 indicates a 58% potential upside.

FANG shares were trading at $116.81 per share on Tuesday morning, down $4.40 (-3.63%). Year-to-date, FANG has gained 11.40%, versus a -20.60% rise in the benchmark S&P 500 index during the same period.

About the Author: Anushka Dutta

Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FANGGet RatingGet RatingGet Rating
MPCGet RatingGet RatingGet Rating
EONGYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Inflation Not Fading Fast Enough for Stock Investors

Investors may have celebrated the end of high inflation too soon. The CPI report shows inflation bouncing higher and thus pushing back the start date for Fed rate cuts. This has the S&P 500 (SPY) coming off recent highs. This begs questions like how much more downside could we see? And when will the bull market get back on track? 44 year investment veteran Steve Reitmeister shares his answers to these questions in this timely commentary including a preview of his top picks to stay ahead of the pack. Read on below for more...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

Read More Stories

More Diamondback Energy Inc. (FANG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All FANG News