In the latest trading session, Archrock Inc. (AROC) closed at $28.17, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.5% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Heading into today, shares of the natural gas compression services business had gained 8.32% over the past month, outpacing the Oils-Energy sector's gain of 7.06% and the S&P 500's gain of 0.18%.
The upcoming earnings release of Archrock Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.4, reflecting a 14.29% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $376.66 million, indicating a 15.39% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.6 per share and revenue of $1.49 billion. These totals would mark changes of +52.38% and 0%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Archrock Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Archrock Inc. is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Archrock Inc. is at present trading with a Forward P/E ratio of 15.19. This represents a discount compared to its industry average Forward P/E of 19.79.
One should further note that AROC currently holds a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AROC's industry had an average PEG ratio of 1.49 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 58, finds itself in the top 24% echelons 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.
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Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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