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Archrock Inc. (AROC) Stock Falls Amid Market Uptick: What Investors Need to Know

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Archrock Inc. (AROC - Free Report) ended the recent trading session at $25.87, demonstrating a -1.67% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

The natural gas compression services business's stock has climbed by 7.65% in the past month, exceeding the Oils-Energy sector's gain of 0.17% and the S&P 500's gain of 3.54%.

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 $0.41 per share. This would mark year-over-year growth of 46.43%. In the meantime, our current consensus estimate forecasts the revenue to be $377.37 million, indicating a 29.16% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.57 per share and a revenue of $1.49 billion, signifying shifts of +49.52% and +28.66%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Archrock Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Archrock Inc. is currently a Zacks Rank #2 (Buy).

Looking at valuation, Archrock Inc. is presently trading at a Forward P/E ratio of 16.81. This signifies a discount in comparison to the average Forward P/E of 17.17 for its industry.

We can additionally observe that AROC currently boasts a PEG ratio of 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 1.87.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 43% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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