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Ecopetrol (EC) Ascends While Market Falls: Some Facts to Note

In the latest market close, Ecopetrol (EC) reached $12.11, with a +0.5% movement compared to the previous day. This change outpaced the S&P 500's 0.25% loss on the day. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.

Prior to today's trading, shares of the oil and natural gas exploration company had gained 1.43% over the past month. This has outpaced the Oils-Energy sector's loss of 5.24% and lagged the S&P 500's gain of 3.59% in that time.

Market participants will be closely following the financial results of Ecopetrol in its upcoming release. The company is forecasted to report an EPS of $0.70, showcasing a 55.56% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.71 billion, up 12.42% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.54 per share and a revenue of $34.11 billion, demonstrating changes of +6.72% and +2.83%, respectively, from the preceding year.

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It is also important to note the recent changes to analyst estimates for Ecopetrol. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% decrease. At present, Ecopetrol boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Ecopetrol is at present trading with a Forward P/E ratio of 4.74. This denotes a premium relative to the industry's average Forward P/E of 4.33.

Meanwhile, EC's PEG ratio is currently 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Integrated - Emerging Markets industry held an average PEG ratio of 0.62.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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