In the latest close session, Archrock Inc. (AROC) was down 6.96% at $30.49. This change lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
Prior to today's trading, shares of the natural gas compression services business had lost 5.53% lagged the Oils-Energy sector's gain of 4.87% and the S&P 500's loss of 0.82%.
Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 7.14% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $382.43 million, unchanged from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.73 per share and revenue of $1.51 billion. These totals would mark changes of -8.95% and +1.48%, respectively, from last 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 4.43% lower. As of now, Archrock Inc. holds a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Archrock Inc. is at present trading with a Forward P/E ratio of 18.98. This valuation marks a discount compared to its industry average Forward P/E of 23.48.
It's also important to note that AROC currently trades at a PEG ratio of 1.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AROC's industry had an average PEG ratio of 2.07 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Archrock, Inc. (AROC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).