Click to Enlarge Ecopetrol (EC) is the largest energy-producer in Colombia, with units producing and refining crude oil, natural gas and coal.Shares have been crushed the past six months, along with most Latin American stocks. The iShares S&P Latin America 40 Index ETF (ILF), in fact, is down over 20% this year. But Ecopetrol could be a light in the dark, as its shares are now basing and moving higher. This is a stock that tends to do well in the summer.
Shares are consolidating the recent advance, giving you a good buy opportunity. The median analyst estimate for EC is $50, so I’m erring a bit on the side of caution and keeping my target a bit below that level.
Be aware that this stock reports earnings after the close today, so if that kind of volatility is a concern for you, you may want to hold on to this idea for a few days before acting.
Recommendation: Buy EC under $46.10 for a $49.50 target.
InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much as 100% to 200% in less than 90 days.
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