Yahoo Finance Ecopetrol (EC) Stock Slides as Market Rises: Facts to Know Before You Trade
The latest trading session saw Ecopetrol (EC) ending at $11.16, denoting a -0.09% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.3%.
The oil and natural gas exploration company's stock has dropped by 9.19% in the past month, falling short of the Oils-Energy sector's loss of 1.6% and the S&P 500's gain of 3.38%.
The upcoming earnings release of Ecopetrol will be of great interest to investors. On that day, Ecopetrol is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 55.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.71 billion, up 12.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.54 per share and revenue of $34.11 billion, which would represent changes of +6.72% and +2.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ecopetrol. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% lower. Right now, Ecopetrol possesses a Zacks Rank of #3 (Hold).
Investors should also note Ecopetrol's current valuation metrics, including its Forward P/E ratio of 4.39. For comparison, its industry has an average Forward P/E of 4.25, which means Ecopetrol is trading at a premium to the group.
We can additionally observe that EC currently boasts a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Oil and Gas - Integrated - Emerging Markets industry was having an average PEG ratio of 0.58.
The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EC in the coming trading sessions, be sure to utilize Zacks.com.
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Ecopetrol S.A. (EC) : Free Stock Analysis Report
