Ecopetrol (EC) Moves 10.0% Higher: Will This Strength Last?

Ecopetrol (EC) shares ended the last trading session 10% higher at $8.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.4% loss over the past four weeks.Ecopetrol is Colombia’s largest petroleum company, which is involved in the exploration, production, and transportation of oil and natural gas. The company’s stock rose due to the broader market rally fueled by President Trump's decision to pause tariff hikes and reduce tariffs for most countries. The move led to higher oil and natural gas prices, benefiting energy companies like Ecopetrol, whose revenue is closely linked to oil price fluctuations. The reduced trade tensions positively impacted investor sentiment, helping to drive Ecopetrol’s stock higher.This oil and natural gas exploration company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +16%. Revenues are expected to be $7.35 billion, down 7.9% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Ecopetrol, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Ecopetrol belongs to the Zacks Oil and Gas - Integrated - International industry. Another stock from the same industry, Chevron (CVX), closed the last trading session 6.7% higher at $146.03. Over the past month, CVX has returned -11.1%.For Chevron, the consensus EPS estimate for the upcoming report has changed -3.9% over the past month to $2.49. This represents a change of -15% from what the company reported a year ago. Chevron currently has a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecopetrol S.A. (EC): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks