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Archrock Inc. (AROC) Gains As Market Dips: What You Should Know

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The latest trading session saw Archrock Inc. (AROC - Free Report) ending at $28.62, denoting a +1.89% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw a decrease of 1.2%.

The the stock of natural gas compression services business has risen by 8.04% in the past month, leading the Oils-Energy sector's gain of 4.11% and the S&P 500's gain of 2.71%.

Investors will be eagerly watching for the performance of Archrock Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.31, marking a 47.62% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $326.08 million, indicating a 25.61% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Archrock Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Archrock Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Archrock Inc. is holding a Forward P/E ratio of 20.45. This valuation marks a premium compared to its industry's average Forward P/E of 14.42.

One should further note that AROC currently holds a PEG ratio of 1.7. 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. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 16% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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