Ecopetrol (EC) closed at $13.86 in the latest trading session, marking a +1.02% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq increased by 0.09%.
Shares of the oil and natural gas exploration company witnessed a loss of 4.19% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 5.67%, and the S&P 500's gain of 4.59%.
The investment community will be closely monitoring the performance of Ecopetrol in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 44.44% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.7 billion, up 2.66% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.37 per share and a revenue of $34.36 billion, indicating changes of 0% and +43.53%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Ecopetrol. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 26.47% upward. Currently, Ecopetrol is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Ecopetrol is currently being traded at a Forward P/E ratio of 5.78. This valuation marks a discount compared to its industry average Forward P/E of 8.25.
It is also worth noting that EC currently has a PEG ratio of 0.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.61 at yesterday's closing price.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 3, placing it within the top 2% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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).