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Should Value Investors Buy Archrock Inc. (AROC) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Archrock Inc. (AROC - Free Report) . AROC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.82, while its industry has an average P/E of 18.98. Over the past year, AROC's Forward P/E has been as high as 166.63 and as low as 13.92, with a median of 34.66.
Finally, investors should note that AROC has a P/CF ratio of 4.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.17. AROC's P/CF has been as high as 6.57 and as low as 2.61, with a median of 4.02, all within the past year.
These are only a few of the key metrics included in Archrock Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AROC looks like an impressive value stock at the moment.
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Should Value Investors Buy Archrock Inc. (AROC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Archrock Inc. (AROC - Free Report) . AROC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.82, while its industry has an average P/E of 18.98. Over the past year, AROC's Forward P/E has been as high as 166.63 and as low as 13.92, with a median of 34.66.
Finally, investors should note that AROC has a P/CF ratio of 4.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.17. AROC's P/CF has been as high as 6.57 and as low as 2.61, with a median of 4.02, all within the past year.
These are only a few of the key metrics included in Archrock Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AROC looks like an impressive value stock at the moment.