Ecopetrol (EC Quick QuoteEC - Free Report) shares rallied 6.4% in the last trading session to close at $13.32. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.5% gain over the past four weeks.

Ecopetrol extended its rally for the second straight day, driven by optimism over the OPEC+ cartel’s surprise decision to extend the oil production cuts till the end of April. The stock has also been driven up by an earlier-than-expected pickup in the commodity’s demand on the back of successful deployment of COVID-19 vaccines. The recovery in crude prices to more than $65 a barrel has pushed drilling activity higher and contributed to the strength in Ecopetrol.

Price and Consensus

This oil and natural gas exploration company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -77.3%. Revenues are expected to be $3.34 billion, down 42.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ecopetrol, the consensus EPS estimate for the quarter has been revised 3.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>