Archrock Inc. (AROC) shares ended the last trading session 11.2% higher at $22.84. 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 3.1% loss over the past four weeks.

The surge can be attributed to the increased demand for Archrock’s natural gas compression services, which play an essential role in natural gas transportation. Natural gas prices have recently rebounded after hitting multi-year lows at the start of 2024. As such, many natural gas producers who had decided to scale down gas production due to an unfavourable pricing environment, have ramped up production once again. Given the forthcoming winter season, the demand for the commodity is anticipated to rise, creating a favorable market environment. Archrock is expected to benefit from the increased production as it should drive up demand for its compression services. Furthermore, President Donald Trump's victory in the 2024 U.S. elections is anticipated to impact oil and gas firms positively. President Trump’s inclination toward increasing oil and gas profits, as seen in his previous term, presents an optimistic picture for oil and gas infrastructure and services firms. The current political environment and the increased demand for its compression services have been significant growth drivers for the company.

This natural gas compression services business is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $292.95 million, up 15.6% 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 Archrock Inc., the consensus EPS estimate for the quarter has been revised 8.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AROC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Archrock Inc. belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Drilling Tools International Corp. (DTI), closed the last trading session 7% higher at $3.50. Over the past month, DTI has returned -11.1%.

Drilling Tools International Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of -57.1%. Drilling Tools International Corp. currently boasts a Zacks Rank of #4 (Sell).

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