Archrock Inc. (AROC) ended the recent trading session at $24.36, demonstrating a -2.33% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.96%. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the natural gas compression services business have appreciated by 0.65% over the course of the past month, underperforming the Oils-Energy sector's gain of 6.67%, and outperforming the S&P 500's gain of 0.5%.
Analysts and investors alike will be keeping a close eye on the performance of Archrock Inc. in its upcoming earnings disclosure. In that report, analysts expect Archrock Inc. to post earnings of $0.38 per share. This would mark year-over-year growth of 52%. Alongside, our most recent consensus estimate is anticipating revenue of $360.26 million, indicating a 33.17% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.62 per share and a revenue of $1.47 billion, representing changes of +54.29% and +27.02%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Archrock Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Archrock Inc. currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 15.36. Its industry sports an average Forward P/E of 15.36, so one might conclude that Archrock Inc. is trading at no noticeable deviation comparatively.
It's also important to note that AROC currently trades at a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Field Services was holding an average PEG ratio of 3.65 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 43% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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