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Archrock Inc. (AROC) Advances While Market Declines: Some Information for Investors

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Archrock Inc. (AROC - Free Report) ended the recent trading session at $24.34, demonstrating a +1.21% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.

Shares of the natural gas compression services business witnessed a loss of 0.74% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 3.6%, and the S&P 500's gain of 4.06%.

Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. The company's upcoming EPS is projected at $0.41, signifying a 46.43% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $377.37 million, showing a 29.16% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.57 per share and a revenue of $1.49 billion, indicating changes of +49.52% and +28.66%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Archrock Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Archrock Inc. boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Archrock Inc. has a Forward P/E ratio of 15.37 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.19.

One should further note that AROC currently holds a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Field Services industry had an average PEG ratio of 1.78.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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