Archrock Inc. (AROC) closed the most recent trading day at $29.59, moving +1.44% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.94%.
Prior to today's trading, shares of the natural gas compression services business had gained 12.11% outpaced the Oils-Energy sector's gain of 11.13% and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. The company is expected to report EPS of $0.4, up 14.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $376.66 million, up 15.39% from the prior-year quarter.
AROC's full-year Zacks Consensus Estimates are calling for earnings of $1.6 per share and revenue of $1.49 billion. These results would represent year-over-year changes of +52.38% and 0%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 #3 (Hold).
In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 15.91. Its industry sports an average Forward P/E of 20.43, so one might conclude that Archrock Inc. is trading at a discount comparatively.
Also, we should mention that AROC has a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Field Services industry currently had an average PEG ratio of 1.75 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 27% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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