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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ecopetrol as such a stock due to the following factors:
- EC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
- EC has traded 332,854 shares today.
- EC is trading at 8.53 times the normal volume for the stock at this time of day.
- EC is trading at a new low 7.05% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on EC:
Ecopetrol S.A., an integrated oil company, is engaged in the exploration, development, and production of crude oil and natural gas primarily in Colombia, Peru, Brazil, and the United States Gulf Coast. The stock currently has a dividend yield of 13.9%. EC has a PE ratio of 1566.0. Currently there are no analysts that rate Ecopetrol a buy, 4 analysts rate it a sell, and 1 rates it a hold.
The average volume for Ecopetrol has been 1.1 million shares per day over the past 30 days. Ecopetrol has a market cap of $34.4 billion and is part of the basic materials sector and energy industry. Shares are down 8.1% year-to-date as of the close of trading on Monday.
rates Ecopetrol as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
- 41.90% is the gross profit margin for ECOPETROL SA which we consider to be strong. Regardless of EC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EC's net profit margin of 12.17% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 50.5% when compared to the same quarter one year ago, falling from $2,059.01 million to $1,019.03 million.
- Net operating cash flow has decreased to $2,807.39 million or 26.47% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Ecopetrol Ratings Report.