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Ecopetrol (EC) closed the latest trading day at $9.04, indicating a -0.11% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
The oil and natural gas exploration company's stock has dropped by 10.22% in the past month, exceeding the Oils-Energy sector's loss of 12.78% and lagging the S&P 500's loss of 8.86%.
Market participants will be closely following the financial results of Ecopetrol in its upcoming release. On that day, Ecopetrol is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 22%. In the meantime, our current consensus estimate forecasts the revenue to be $7.35 billion, indicating a 7.89% decline compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ecopetrol. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an 8.45% decrease. Ecopetrol is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Ecopetrol has a Forward P/E ratio of 5.22 right now. This expresses a discount compared to the average Forward P/E of 7.9 of its industry.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 212, this industry ranks in the bottom 15% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EC in the coming trading sessions, be sure to utilize Zacks.com.