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Archrock Inc. (AROC) Stock Moves -1.63%: What You Should Know

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Archrock Inc. (AROC - Free Report) closed the latest trading day at $21.68, indicating a -1.63% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 2.32% for the day. Elsewhere, the Dow lost 1.25%, while the tech-heavy Nasdaq lost 3.64%.

Heading into today, shares of the natural gas compression services business had gained 12.33% over the past month, outpacing the Oils-Energy sector's loss of 8.99% and the S&P 500's gain of 1.79% in that time.

The upcoming earnings release of Archrock Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 44.44% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $270.59 million, indicating a 9.31% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.07 per share and a revenue of $1.09 billion, demonstrating changes of +55.07% and +10.25%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Archrock Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Archrock Inc. presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Archrock Inc. is currently exchanging hands at a Forward P/E ratio of 20.6. For comparison, its industry has an average Forward P/E of 18.85, which means Archrock Inc. is trading at a premium to the group.

One should further note that AROC currently holds a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services industry had an average PEG ratio of 1.06 as trading concluded yesterday.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 220, positioning it in the bottom 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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