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Archrock Inc. (AROC) Ascends While Market Falls: Some Facts to Note

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Archrock Inc. (AROC - Free Report) closed at $26.25 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.24%.

Prior to today's trading, shares of the natural gas compression services business had gained 7.23% outpaced the Oils-Energy sector's loss of 1.02% and the S&P 500's gain of 0.94%.

Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. The company is forecasted to report an EPS of $0.4, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $376.66 million, showing a 15.39% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.6 per share and revenue of $1.49 billion, which would represent changes of +52.38% and +28.66%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Archrock Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Archrock Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 16.22. For comparison, its industry has an average Forward P/E of 19.05, which means Archrock Inc. is trading at a discount to the group.

Investors should also note that AROC has a PEG ratio of 1.35 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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