VNOM Should I Buy
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Viper Energy Inc (VNOM) is not a strong buy for a beginner investor with a long-term strategy at this time. Despite hedge fund buying activity and a bullish technical setup, the company's financial performance has been weak, with significant declines in net income, EPS, and gross margin. Additionally, the stock's near-term trend suggests a potential decline, and no recent positive news or significant catalysts are present to support immediate growth. Analysts remain cautiously optimistic with price targets slightly above the current price, but the lack of strong growth signals and the absence of Intellectia Proprietary Trading Signals make this stock a hold rather than a buy.
The technical indicators show a bullish trend with MACD above 0 and positively contracting, RSI at 75.035 in the neutral zone, and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). The current price of $44.03 is near the resistance level of R1: $43.973 and below R2: $44.877, suggesting limited immediate upside potential.
Hedge funds are actively buying, with a 698.01% increase in buying activity over the last quarter. Analysts maintain an Overweight rating, and the company has streamlined its operations to focus on a Permian-only production base, which could enhance cash flow margins and predictability.
Weak financial performance in Q3 2025, with a 257.81% YoY drop in net income, a 200% YoY drop in EPS, and a 25.12% YoY decline in gross margin. The stock's near-term trend indicates a potential decline of -0.8% in the next week and -4.71% in the next month. No recent news or significant event-driven catalysts.
In Q3 2025, revenue increased by 99.44% YoY to $418 million, but net income dropped to -$77 million (-257.81% YoY), EPS fell to -0.52 (-200% YoY), and gross margin declined to 50 (-25.12% YoY).
Analysts maintain a cautiously optimistic stance with Overweight ratings and price targets ranging from $41 to $64. Recent adjustments reflect concerns about macro volatility and oil price uncertainty, but analysts highlight the company's resilient portfolio and potential for long-term value.
