In the latest close session, Archrock Inc. (AROC) was down 3.58% at $40.45. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 2.07%.
The natural gas compression services business's stock has climbed by 25.26% in the past month, exceeding the Oils-Energy sector's loss of 7.93% and the S&P 500's loss of 2.9%.
Investors will be eagerly watching for the performance of Archrock Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.46, up 17.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $390.4 million, up 1.89% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.9 per share and revenue of $1.55 billion. These totals would mark changes of 0% and +4.19%, respectively, from last year.
Investors might also notice recent changes 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.39% fall in the Zacks Consensus EPS estimate. Archrock Inc. presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Archrock Inc. is holding a Forward P/E ratio of 22.04. This expresses a premium compared to the average Forward P/E of 21.65 of its industry.
One should further note that AROC currently holds a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Field Services industry had an average PEG ratio of 2.04 as trading concluded yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Archrock, Inc. (AROC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).