In the latest close session, Archrock Inc. (AROC) was up +1.15% at $30.68. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.15%.
Prior to today's trading, shares of the natural gas compression services business had lost 0.52% lagged the Oils-Energy sector's gain of 3.04% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. In that report, analysts expect Archrock Inc. to post earnings of $0.45 per share. This would mark year-over-year growth of 7.14%. Our most recent consensus estimate is calling for quarterly revenue of $382.43 million, unchanged from the year-ago period.
AROC's full-year Zacks Consensus Estimates are calling for earnings of $1.73 per share and revenue of $1.51 billion. These results would represent year-over-year changes of -8.95% and +1.48%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archrock Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has remained steady. Archrock Inc. currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 17.57. Its industry sports an average Forward P/E of 19.7, so one might conclude that Archrock Inc. is trading at a discount comparatively.
It's also important to note that AROC currently trades at a PEG ratio of 1.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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).