Archrock Inc. (AROC) ended the recent trading session at $24.46, demonstrating a +2.6% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.48%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the natural gas compression services business have depreciated by 3.13% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.84%, and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Archrock Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.41, up 46.43% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $377.37 million, indicating a 29.16% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $1.49 billion, indicating changes of +49.52% and +28.66%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Archrock Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Archrock Inc. is currently a Zacks Rank #2 (Buy).
In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 15.23. For comparison, its industry has an average Forward P/E of 17.33, which means Archrock Inc. is trading at a discount to the group.
One should further note that AROC currently holds a PEG ratio of 1.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AROC's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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