Archrock, Inc. (AROC) Hit a 52 Week High, Can the Run Continue?

Shares of Archrock Inc. (AROC) have been strong performers lately, with the stock up 11.1% over the past month. The stock hit a new 52-week high of $30.15 in the previous session. Archrock Inc. has gained 13.7% since the start of the year compared to the 19.5% gain for the Zacks Oils-Energy sector and the 30.2% return for the Zacks Oil and Gas - Field Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 28, 2025, Archrock Inc. reported EPS of $0.42 versus consensus estimate of $0.41.

For the current fiscal year, Archrock Inc. is expected to post earnings of $1.84 per share on $1.49 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.14 per share on $1.58 in revenues. This represents a year-over-year change of 15% and 6.18%, respectively.

Valuation Metrics

While Archrock Inc. has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Archrock Inc. has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 16.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.4X. On a trailing cash flow basis, the stock currently trades at 12.6X versus its peer group's average of 7.8X. Additionally, the stock has a PEG ratio of 1.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Archrock Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Archrock Inc. fits the bill. Thus, it seems as though Archrock Inc. shares could have a bit more room to run in the near term.

How Does AROC Stack Up to the Competition?

Shares of AROC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Drilling Tools International Corp. (DTI). DTI has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.

Earnings were strong last quarter. Drilling Tools International Corp. beat our consensus estimate by 300.00%, and for the current fiscal year, DTI is expected to post earnings of $0.15 per share on revenue of $158.75 million.

Shares of Drilling Tools International Corp. have gained 47.3% over the past month, and currently trade at a forward P/E of 25.33X and a P/CF of 3.95X.

The Oil and Gas - Field Services industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AROC and DTI, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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