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Why Encana (ECA) Could Be Positioned for a Surge

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Encana Corporation is a leading independent natural gas producer and operator in the world,  that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ECA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Encana could be a solid choice for investors.

Current Quarter Estimates for ECA

In the past 30 days, 3 estimates have gone higher for Encana while 1 has gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 6 cents a share 30 days ago, to a loss of 2 today, a move of 66.7%.

Current Year Estimates for ECA

Meanwhile, Encana’s current year figures are also looking quite promising, with 7 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, narrowing from 31 cents per share 30 days ago to 10 cents per share today, an increase of 67.7%.

ENCANA CORP Price and Consensus

 

ENCANA CORP Price and Consensus | ENCANA CORP Quote

Bottom Line

The stock has also started to move higher lately, adding 22.3% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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