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The most recent trading session ended with Archrock Inc. (AROC) standing at $25.36, reflecting a -1.93% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 1.11%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 1.89%.
Shares of the natural gas compression services business witnessed a gain of 2.13% over the previous month, beating the performance of the Oils-Energy sector with its loss of 11.62% and the S&P 500's loss of 1.7%.
The investment community will be closely monitoring the performance of Archrock Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.31, reflecting a 47.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $326.08 million, up 25.61% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Archrock Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Archrock Inc. holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Archrock Inc. has a Forward P/E ratio of 18.83 right now. Its industry sports an average Forward P/E of 15.42, so one might conclude that Archrock Inc. is trading at a premium comparatively.
It is also worth noting that AROC currently has a PEG ratio of 1.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 1.16.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.