In the latest trading session, Archrock Inc. (AROC) closed at $23.44, marking a -2.46% move from the previous day. This change lagged the S&P 500's 0.61% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.
Prior to today's trading, shares of the natural gas compression services business had lost 3.1% lagged the Oils-Energy sector's gain of 5.17% and the S&P 500's gain of 3.85%.
Analysts and investors alike will be keeping a close eye on the performance of Archrock Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.37, reflecting a 48% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $360.26 million, indicating a 33.17% growth compared to the corresponding quarter of the prior year.
AROC's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $1.47 billion. These results would represent year-over-year changes of +47.62% and +27.02%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Archrock Inc. Recent revisions tend to reflect the latest near-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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 4.83% fall in the Zacks Consensus EPS estimate. Archrock Inc. currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Archrock Inc. is currently being traded at a Forward P/E ratio of 15.55. This represents a premium compared to its industry average Forward P/E of 14.94.
Also, we should mention that AROC has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 12% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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