In the latest trading session, Archrock Inc. (AROC) closed at $26.86, marking a -1.32% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.12%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 2.04%.
The natural gas compression services business's shares have seen an increase of 3.11% over the last month, not keeping up with the Oils-Energy sector's gain of 3.39% and outstripping the S&P 500's loss of 2.91%.
Investors will be eagerly watching for the performance of Archrock Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.39, marking a 50% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $341.88 million, indicating a 27.33% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $1.44 billion, representing changes of +56.19% and +24.54%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Archrock Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 19.42% upward. As of now, Archrock Inc. holds a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Archrock Inc. is currently exchanging hands at a Forward P/E ratio of 16.6. This valuation marks a premium compared to its industry's average Forward P/E of 15.06.
It is also worth noting that AROC currently has a PEG ratio of 1.38. 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 average PEG ratio for the Oil and Gas - Field Services industry stood at 1.68 at the close of the market yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Archrock, Inc. (AROC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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