Archrock Inc. (AROC) Ascends While Market Falls: Some Facts to Note

Zacks
01-25

Archrock Inc. (AROC) ended the recent trading session at $29.70, demonstrating a +0.34% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.

The natural gas compression services business's shares have seen an increase of 19.26% over the last month, surpassing the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52%.

Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. It is anticipated that the company will report an EPS of $0.31, marking a 47.62% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $326.08 million, indicating a 25.61% upward movement from the same quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archrock Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Archrock Inc. is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, Archrock Inc. is currently being traded at a Forward P/E ratio of 21.55. This represents a premium compared to its industry's average Forward P/E of 15.35.

Investors should also note that AROC has a PEG ratio of 1.8 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AROC's industry had an average PEG ratio of 1.66 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 8% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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