Encana (ECA) closed the most recent trading day at $4.92, moving +0.2% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Coming into today, shares of the energy company had gained 14.99% in the past month. In that same time, the Oils-Energy sector gained 6.28%, while the S&P 500 gained 3%.
Investors will be hoping for strength from ECA as it approaches its next earnings release. In that report, analysts expect ECA to post earnings of $0.16 per share. This would mark a year-over-year decline of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $1.75 billion, up 38.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.60 per share and revenue of $6.47 billion, which would represent changes of -30.23% and +8.99%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ECA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.11% lower. ECA is currently a Zacks Rank #3 (Hold).
Digging into valuation, ECA currently has a Forward P/E ratio of 8.24. Its industry sports an average Forward P/E of 9.62, so we one might conclude that ECA is trading at a discount comparatively.
Also, we should mention that ECA has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - Canadian was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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