Archrock Inc. (AROC) closed the latest trading day at $23.12, indicating a +1.58% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
The natural gas compression services business's stock has dropped by 16.66% in the past month, falling short of the Oils-Energy sector's loss of 12.78% and the S&P 500's loss of 8.86%.
Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.39, reflecting a 50% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.88 million, up 27.33% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.64 per share and a revenue of $1.44 billion, indicating changes of +56.19% and +24.54%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archrock Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Archrock Inc. is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Archrock Inc. is holding a Forward P/E ratio of 13.88. This indicates a premium in contrast to its industry's Forward P/E of 11.18.
It is also worth noting that AROC currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Field Services industry currently had an average PEG ratio of 1.43 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 82, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
