In the latest trading session, Archrock Inc. (AROC) closed at $29.77, marking a +1.92% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.05%.
Coming into today, shares of the natural gas compression services business had lost 3.91% in the past month. In that same time, the Oils-Energy sector gained 6.29%, while the S&P 500 gained 0.97%.
The investment community will be closely monitoring the performance of Archrock Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.46, up 9.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $382.43 million, unchanged from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $1.51 billion. These totals would mark changes of -6.84% and +1.48%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Archrock Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has shifted 0.39% downward. Right now, Archrock Inc. possesses a Zacks Rank of #5 (Strong Sell).
Investors should also note Archrock Inc.'s current valuation metrics, including its Forward P/E ratio of 16.47. For comparison, its industry has an average Forward P/E of 20.99, which means Archrock Inc. is trading at a discount to the group.
Meanwhile, AROC's PEG ratio is currently 1.37. 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 was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% 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.
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).