Ecopetrol (EC) closed at $13.22 in the latest trading session, marking a +2.72% move from the prior day. This change outpaced the S&P 500's 0.77% gain on the day. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.88%.
Shares of the oil and natural gas exploration company witnessed a loss of 2.28% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 0.32%, and the S&P 500's gain of 8.15%.
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 $0.52 per share, which would represent year-over-year growth of 44.44%. Simultaneously, our latest consensus estimate expects the revenue to be $7.7 billion, showing a 2.66% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.4 per share and a revenue of $34.36 billion, demonstrating changes of 0% and +43.53%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Ecopetrol. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 42.38% rise in the Zacks Consensus EPS estimate. As of now, Ecopetrol holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Ecopetrol's current valuation metrics, including its Forward P/E ratio of 5.37. This valuation marks a discount compared to its industry average Forward P/E of 8.08.
We can additionally observe that EC currently boasts a PEG ratio of 0.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.59 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% echelons 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.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ecopetrol S.A. (EC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).