Gerdes Energy Research initiated coverage on CHK and FANG with a “buy” rating
Energy stocks Chesapeake Energy Corporation (NASDAQ:CHK) and Diamondback Energy Inc (NASDAQ:FANG) are in the spotlight today, after Gerdes Energy Research initiated coverage on both with a “buy” rating. This is the second bull note for the pair this week, as Mizuho assumed coverage on both with a “buy” on Monday as well. Both stocks are inching lower despite the praise, with CHK down 0.8% at last check, while FANG is 0.2% lower.
The shares of Chesapeake Energy are outperforming with a 28.6% year-over-year gain, and bounced off the $84 level and 320-day moving average earlier this month. There is plenty of short-covering potential, too, as short interest makes up 7.8% of the stock’s available float, or over five days’ worth of pent-up buying power.
Diamondback Energy stock is sporting a 21.1% year-over-year gain — up 6% since the start of 2023. The stock is looking to snap a six-day win streak, should today’s minor losses hold, though a slew of moving averages linger below as potential support.
It’s also worth noting that options bears have been targeting FANG despite its relative strength on the charts, per the security’s 10-day put/call volume ratio of 10.90 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than all other readings from the past year.