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Ecopetrol (EC) Registers a Bigger Fall Than the Market: Important Facts to Note

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Ecopetrol (EC - Free Report) closed the most recent trading day at $9.53, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.5% loss on the day. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.

Shares of the oil and natural gas exploration company have appreciated by 4.33% over the course of the past month, outperforming the Oils-Energy sector's gain of 3.33%, and the S&P 500's gain of 2.74%.

Analysts and investors alike will be keeping a close eye on the performance of Ecopetrol in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.39, indicating a 9.3% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, down 19.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $28.27 billion, which would represent changes of -18.67% and -13.68%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ecopetrol. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ecopetrol is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Ecopetrol has a Forward P/E ratio of 7.12 right now. This expresses a discount compared to the average Forward P/E of 10.86 of its industry.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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