In the latest trading session, Ecopetrol (EC) closed at $15.98, marking a -1.11% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
Shares of the oil and natural gas exploration company have appreciated by 2.34% over the course of the past month, outperforming the Oils-Energy sector's loss of 1.03%, and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of Ecopetrol in its upcoming earnings disclosure. The company is expected to report EPS of $0.79, up 276.19% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.52 billion, indicating a 34.24% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.02 per share and revenue of $33.77 billion, indicating changes of +60.32% and +14.09%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Ecopetrol. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.34% downward. At present, Ecopetrol boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Ecopetrol is presently being traded at a Forward P/E ratio of 8. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 8.
Investors should also note that EC has a PEG ratio of 0.68 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. EC's industry had an average PEG ratio of 0.62 as of yesterday's close.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 234, positioning it in the bottom 5% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ecopetrol S.A. (EC): Free Stock Analysis Report
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