In the latest close session, Archrock Inc. (AROC) was down 2.7% at $37.49. The stock's performance was behind the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
Prior to today's trading, shares of the natural gas compression services business had gained 7.78% outpaced the Oils-Energy sector's loss of 1.03% and the S&P 500's gain of 1.61%.
The upcoming earnings release of Archrock Inc. will be of great interest to investors. The company is predicted to post an EPS of $0.46, indicating a 17.95% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $390.4 million, reflecting a 1.89% rise from the equivalent quarter last year.
AROC's full-year Zacks Consensus Estimates are calling for earnings of $1.9 per share and revenue of $1.55 billion. These results would represent year-over-year changes of 0% and +4.19%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Archrock Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 2.39% fall in the Zacks Consensus EPS estimate. As of now, Archrock Inc. holds a Zacks Rank of #3 (Hold).
In the context of valuation, Archrock Inc. is at present trading with a Forward P/E ratio of 20.24. This signifies a discount in comparison to the average Forward P/E of 22.9 for its industry.
We can also see that AROC currently has a PEG ratio of 1.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Field Services industry stood at 1.98 at the close of the market yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
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.
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Archrock, Inc. (AROC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).