Zacks highlights two energy stocks with positive Earnings Surprise Prediction (ESP) metrics that could outperform earnings expectations. Diamondback Energy (FANG) has a +7.90% ESP ahead of its November 2, 2026 earnings report, while Cheniere Energy (LNG) shows a +30.19% ESP before reporting on October 29, 2026. Both stocks carry a Zacks Rank #3 (Hold) rating.

Diamondback Energy (FANG), an independent oil and gas exploration company focused on the Permian Basin, is highlighted as a momentum investment opportunity. With a #3 (Hold) Zacks Rank and an A-rated VGM Score, FANG has seen three analyst earnings estimate revisions upward for fiscal 2026, with shares up 1.5% over the past four weeks and an average earnings surprise of +7.1%.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat earnings estimates by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. Using positive ESP with a Zacks Rank #3 or better has historically resulted in positive earnings surprises 70% of the time with 28.3% average annual returns. Two oil and energy stocks highlighted are SM Energy (Strong Buy) and Diamondback Energy (Hold), both showing positive ESP figures ahead of their November earnings releases.

Diamondback Energy (FANG) outperformed the broader market on October 13, 2026, closing up 1.57% while the S&P 500 declined 0.02%. Despite a 5.16% monthly decline, the company is forecasted to report strong earnings growth of 45.13% YoY with revenue expected at $4.18 billion. FANG currently holds a Zacks Rank #3 (Hold) rating with a Forward P/E of 9.56, trading in line with its industry average.

Diamondback Energy (FANG) has a strong track record of beating earnings estimates, with an average beat of 13.94% over the last two quarters. The company has a positive Earnings ESP of +5.40% combined with a Zacks Rank #3 (Hold), suggesting a high probability of another earnings beat in its next report expected on November 2, 2026.

Cenovus Energy is acquiring Athabasca Oil for $5.7 billion, adding approximately 45,000 barrels of oil equivalent per day of production. The deal aims to leverage Cenovus' SAGD expertise to improve operational efficiency, generate $85 million in annual synergies, and expand thermal production to 115 MBPD by 2032. The transaction is expected to be accretive to adjusted funds flow per share by 2027.

Diamondback Energy (FANG) is highlighted as a stock to watch for growth investors, featuring a #3 Hold rank on the Zacks system with a VGM Score of A. The company forecasts 52.1% year-over-year earnings growth for the current fiscal year, with six analysts revising earnings estimates upward in the last 60 days, increasing the Zacks Consensus Estimate to $20.33 per share.

With WTI crude hovering around $90 per barrel due to Middle East tensions, Permian Basin energy producers are well-positioned for growth. Diamondback Energy, ExxonMobil, and Chevron are highlighted as key players benefiting from strong oil prices and their strategic positions in the prolific basin, with production expected to increase to 6.76 million barrels per day this year.

Diamondback Energy (FANG) declined 1.64% to $189.27, underperforming the broader market which gained significantly. Despite the near-term weakness, the company is expected to report strong earnings with EPS projected at $4.48 (up 45.45% YoY) and revenue of $4.18 billion (up 6.46% YoY). The stock holds a Zacks Rank #3 (Hold) with a Forward P/E of 9.46, trading at a slight discount to its industry average.

Diamondback Energy (FANG) outperformed the broader market on September 15, 2026, closing up 2.82% while the S&P 500 declined 0.45%. The energy exploration and production company is expected to report strong earnings growth of 44.16% year-over-year with revenue projected at $4.15 billion. However, the stock carries a Zacks Rank of #3 (Hold) with a Forward P/E ratio of 10.32, slightly above its industry average.

The article compares Bloom Energy, a clean energy innovator in solid oxide fuel cells for AI data centers, with Diamondback Energy, a traditional oil and gas producer in the Permian Basin. While Bloom Energy shows impressive 37.3% revenue growth, it remains unprofitable with a P/E ratio of 350.25. Diamondback Energy demonstrates superior profitability with $1.7B net income, a P/E of 39.86, and robust free cash flow of $5.5B. The author recommends Diamondback Energy for 2026 due to its profitable operations, growing dividend, and emerging AI energy partnerships, though acknowledges Bloom Energy's high-growth potential for risk-tolerant investors.

The Zacks Oil and Gas - US E&P industry is entering a constructive phase supported by lean global oil inventories, improved drilling efficiency, and new natural gas demand channels from LNG exports and data centers. The industry ranks #95 among 248 Zacks industries with 2026 earnings estimates up 41.5% year-over-year. W&T Offshore, APA Corp., and Diamondback Energy are highlighted as well-positioned stocks with solid production bases and disciplined capital spending, though risks from commodity price volatility and cost inflation remain.