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Archrock (AROC - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and D for Growth. This oil and gas stock that focuses on compression services recently beat earnings and has a great chart. Let’s explore more about this company in this Bull of The Day article.
Description
Archrock, Inc. is a provider of natural gas contract compression services as well as supplier of aftermarket services of compression equipment. The company operates in the oil and gas producing regions primarily in the United States. Archrock, Inc., formerly known as Exterran Holdings, Inc., is based in Houston, United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Archrock, I see two beats and two meets of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 8%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Following the most recent quarter estimates have trended higher.
The consensus estimate for the current quarter has held still at $0.22.
Next quarter has seen the consensus move from $0.22 to $0.24.
The full fiscal year 2024 estimate has moved from $0.91 to $1.00
Next year has moved from $1.08 to $1.15.
Valuation
The forward PE multiple for AROC is 21.2x which is just above the average market multiple of about 18x. The price to book stands at 3.8x, which means the value oriented will be only slightly interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes om at 3.3x. Over the last two quarters, operating margins have increased from 9% to 11%.
When a company is able to produce good topline growth (18.6% in the most recent quarter for AROC) and has expanding margins then it is a pretty safe bet to say that earnings are going to be heading higher.
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Bull Of The Day: Archrock (AROC)
Archrock (AROC - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and D for Growth. This oil and gas stock that focuses on compression services recently beat earnings and has a great chart. Let’s explore more about this company in this Bull of The Day article.
Description
Archrock, Inc. is a provider of natural gas contract compression services as well as supplier of aftermarket services of compression equipment. The company operates in the oil and gas producing regions primarily in the United States. Archrock, Inc., formerly known as Exterran Holdings, Inc., is based in Houston, United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Archrock, I see two beats and two meets of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 8%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Following the most recent quarter estimates have trended higher.
The consensus estimate for the current quarter has held still at $0.22.
Next quarter has seen the consensus move from $0.22 to $0.24.
The full fiscal year 2024 estimate has moved from $0.91 to $1.00
Next year has moved from $1.08 to $1.15.
Valuation
The forward PE multiple for AROC is 21.2x which is just above the average market multiple of about 18x. The price to book stands at 3.8x, which means the value oriented will be only slightly interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes om at 3.3x. Over the last two quarters, operating margins have increased from 9% to 11%.
When a company is able to produce good topline growth (18.6% in the most recent quarter for AROC) and has expanding margins then it is a pretty safe bet to say that earnings are going to be heading higher.