Encana Corporation (USA) (NYSE:ECA) has been fluctuating in the market, with respect to changes in oil prices. The situation has quickly attracted the attention of several analysts who have weighed in on the future movement of the stock. Most recently, the stock was experiencing a surge in its stock price, following an improvement in oil prices. A similar situation was observed in other energy stocks as well.
The recent change in oil pricing is mainly due to a statement from the Iranian Oil Minister, Bijan Zanganeh, that his country supports measures to improve oil prices in international market. Added to this, the members of OPEC are weighing in on the decision to slowdown or halt the production of oil. The global oversupply of oil and related commodities had resulted in a steep decline in oil prices and the recent agreement by OPEC was expected to face severe opposition from Iran. However, recent events have proved otherwise and the situation could very well change in the near future.
Encana Corporation is scheduled to hold its earnings call for the 4Q2015 on February 24. Over the last year ECA has suffered a decline of 68.46% in its share value and is below the S&P500. This coupled with a steep decline in EPS, on a year-over-year basis, has resulted in a sell rating being awarded to the stock by TheStreet. However, in the 4Q2015, analysts estimate that ECA would report a 106.67% increase in EPS, on a year-over-year basis.
The majority of analysts that cover the stock have weighed in positively in the stock, with 48% stating that the stock is a buy. In the near future, the stock’s performance would heavily rely on its 4Q2015 report. However, long-term investors of the company would have to wait and see how the global oil market changes in the coming weeks, before making a decision.
Encana Corporation (USA) (NYSE:ECA) completed the February 17 session with a gain of 7.5% in its share value, to reach a close at $3.87.