Ecopetrol (EC) closed at $17.23 in the latest trading session, marking a +1.71% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq lost 0.44%.
The oil and natural gas exploration company's stock has dropped by 4.56% in the past month, falling short of the Oils-Energy sector's gain of 1.73% and the S&P 500's gain of 2.36%.
Investors will be eagerly watching for the performance of Ecopetrol in its upcoming earnings disclosure. On that day, Ecopetrol is projected to report earnings of $0.5 per share, which would represent year-over-year growth of 61.29%. Alongside, our most recent consensus estimate is anticipating revenue of $9.75 billion, indicating a 30.69% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.08 per share and a revenue of $38.57 billion, representing changes of +65.08% and +30.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ecopetrol. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 12.47% increase. Currently, Ecopetrol is carrying a Zacks Rank of #1 (Strong Buy).
Investors should also note Ecopetrol's current valuation metrics, including its Forward P/E ratio of 8.16. This denotes a premium relative to the industry average Forward P/E of 7.92.
One should further note that EC currently holds a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.63 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 36, positioning it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Ecopetrol S.A. (EC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).