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Archrock Inc. (AROC) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Archrock Inc. (AROC - Free Report) was down 2.07% at $23.16. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.15%.

The natural gas compression services business's shares have seen a decrease of 3.74% over the last month, not keeping up with the Oils-Energy sector's gain of 4.18% and the S&P 500's gain of 3.39%.

Analysts and investors alike will be keeping a close eye on the performance of Archrock Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on August 4, 2025. The company is expected to report EPS of $0.37, up 48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $360.26 million, up 33.17% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $1.47 billion, which would represent changes of +46.67% and +27.02%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Archrock Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% downward. Right now, Archrock Inc. possesses a Zacks Rank of #4 (Sell).

Investors should also note Archrock Inc.'s current valuation metrics, including its Forward P/E ratio of 15.36. This signifies a discount in comparison to the average Forward P/E of 16.92 for its industry.

Meanwhile, AROC's PEG ratio is currently 1.28. 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 average PEG ratio for the Oil and Gas - Field Services industry stood at 3.35 at the close of the market yesterday.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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