In the latest close session, Archrock Inc. (AROC) was up +1.48% at $35.69. The stock's performance was ahead of the S&P 500's daily loss of 1.62%. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.
The stock of natural gas compression services business has fallen by 5.53% in the past month, lagging the Oils-Energy sector's loss of 0.59% and the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Archrock Inc. in its upcoming release. The company is forecasted to report an EPS of $0.47, showcasing a 20.51% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $390.4 million, indicating a 1.89% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.95 per share and revenue of $1.55 billion, indicating changes of +2.63% and +4.19%, respectively, compared to the previous year.
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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Archrock Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Archrock Inc. is presently being traded at a Forward P/E ratio of 18.04. This represents a discount compared to its industry average Forward P/E of 22.97.
It is also worth noting that AROC currently has a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 2.26.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 17% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Archrock, Inc. (AROC): Free Stock Analysis Report
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