Archrock Inc. (AROC) closed at $25.86 in the latest trading session, marking a -2.08% move from the prior day. This change lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.65%.
Coming into today, shares of the natural gas compression services business had gained 5.68% in the past month. In that same time, the Oils-Energy sector gained 0.26%, while the S&P 500 gained 0.59%.
The investment community will be closely monitoring the performance of Archrock Inc. in its forthcoming earnings report. On that day, Archrock Inc. is projected to report earnings of $0.4 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $376.66 million, indicating a 15.39% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.6 per share and revenue of $1.49 billion, which would represent changes of +52.38% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Archrock Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Archrock Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Archrock Inc. is presently being traded at a Forward P/E ratio of 14.4. This valuation marks a discount compared to its industry average Forward P/E of 17.68.
Also, we should mention that AROC has a PEG ratio of 1.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 1.46.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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