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Ecopetrol (EC) Laps the Stock Market: Here's Why

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The most recent trading session ended with Ecopetrol (EC - Free Report) standing at $10.91, reflecting a +0.74% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.24% for the day. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the oil and natural gas exploration company had gained 28.32% over the past month. This has outpaced the Oils-Energy sector's loss of 3.18% and the S&P 500's gain of 2.37% in that time.

Market participants will be closely following the financial results of Ecopetrol in its upcoming release. The company plans to announce its earnings on March 4, 2025. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 40.54% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.09 billion, reflecting a 5.77% fall from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Ecopetrol. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.15% rise in the Zacks Consensus EPS estimate. As of now, Ecopetrol holds a Zacks Rank of #3 (Hold).

In terms of valuation, Ecopetrol is currently trading at a Forward P/E ratio of 6.17. This denotes a discount relative to the industry's average Forward P/E of 8.03.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 132, finds itself in the bottom 48% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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