Is Diamondback Energy Stock a Buy?
This year was supposed to be Diamondback Energy's (NASDAQ: FANG) year to shine. The energy company spent years building out a large-scale operation in the Permian Basin through acquisitions and organic expansion. Those investments had it on track to generate a gusher of free cash flow in 2020 at a conservative oil price assumption.
Crude prices, however, have crashed well below the most pessimistic outlook because of the COVID-19 outbreak. That has put intense pressure on Diamondback's stock, which has lost two-thirds of its value this year.
The sell-off probably has some investors wondering whether Diamondback Energy might be a good buy as a bounce-back candidate. Here's a look at the case for and against buying shares of the oil producer.
Source Fool.com
