The latest trading session saw Archrock Inc. (AROC) ending at $23.83, denoting a +1.27% adjustment from its last day's close. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, added 1.52%.
The natural gas compression services business's stock has dropped by 13.21% in the past month, falling short of the Oils-Energy sector's loss of 11.18% and the S&P 500's loss of 0.7%.
The investment community will be paying close attention to the earnings performance of Archrock Inc. in its upcoming release. The company is slated to reveal its earnings on May 5, 2025. It is anticipated that the company will report an EPS of $0.39, marking a 50% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $341.88 million, indicating a 27.33% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.66 per share and a revenue of $1.46 billion, demonstrating changes of +58.1% and +26.16%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Archrock Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.02% higher within the past month. Archrock Inc. currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Archrock Inc. has a Forward P/E ratio of 14.2 right now. This signifies a premium in comparison to the average Forward P/E of 12.86 for its industry.
One should further note that AROC currently holds a PEG ratio of 1.18. 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 had an average PEG ratio of 1.41 as trading concluded yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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
