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Here's Why Archrock Inc. (AROC) Fell More Than Broader Market

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In the latest market close, Archrock Inc. (AROC - Free Report) reached $26.69, with a -0.48% movement compared to the previous day. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.33%.

Shares of the natural gas compression services business have depreciated by 4.66% over the course of the past month, underperforming the Oils-Energy sector's loss of 1.22% and outperforming the S&P 500's loss of 7.48%.

Market participants will be closely following the financial results of Archrock Inc. in its upcoming release. In that report, analysts expect Archrock Inc. to post earnings of $0.39 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.88 million, up 27.33% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $1.44 billion, representing changes of +56.19% and +24.54%, respectively, from the prior year.

Investors should also take note of any recent adjustments 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 company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 19.42% increase. Currently, Archrock Inc. is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Archrock Inc. is currently trading at a Forward P/E ratio of 16.35. This denotes a premium relative to the industry's average Forward P/E of 13.43.

Investors should also note that AROC has a PEG ratio of 1.36 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Field Services was holding an average PEG ratio of 1.66 at yesterday's closing price.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 129, this industry ranks in the bottom 49% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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