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Why the Market Dipped But Ecopetrol (EC) Gained Today

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Ecopetrol (EC - Free Report) ended the recent trading session at $8.81, demonstrating a +1.97% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.05%.

Prior to today's trading, shares of the oil and natural gas exploration company had lost 3.57% over the past month. This has was narrower than the Oils-Energy sector's loss of 4.39% and lagged the S&P 500's gain of 5.94% in that time.

The investment community will be closely monitoring the performance of Ecopetrol in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.63, reflecting a 3.28% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.02 billion, indicating a 7.53% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.06 per share and revenue of $32.41 billion, which would represent changes of -13.45% and -2.32%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Ecopetrol. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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 last 30 days, the Zacks Consensus EPS estimate has moved 12.09% lower. Right now, Ecopetrol possesses a Zacks Rank of #5 (Strong Sell).

Investors should also note Ecopetrol's current valuation metrics, including its Forward P/E ratio of 4.19. For comparison, its industry has an average Forward P/E of 5.19, which means Ecopetrol is trading at a discount to the group.

The Oil and Gas - Integrated - Emerging Markets industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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