Company Performance - Archrock Inc. closed at $28.13, reflecting a -1.71% change from the previous day, underperforming the S&P 500 which gained 0.03% [1] - Over the past month, Archrock's shares have appreciated by 6.2%, outperforming the Oils-Energy sector's gain of 0.76% and the S&P 500's gain of 4.19% [1] Earnings Projections - The projected earnings per share (EPS) for Archrock is $0.31, indicating a 47.62% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $326.08 million, representing a 25.61% increase from the year-ago period [2] Analyst Sentiment - Recent shifts in analyst projections for Archrock should be monitored, as positive revisions indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which reflects these revisions, currently ranks Archrock as 2 (Buy) [5] Valuation Metrics - Archrock has a Forward P/E ratio of 20.84, which is a premium compared to the industry's average Forward P/E of 15.02 [6] - The company has a PEG ratio of 1.74, while the Oil and Gas - Field Services industry has an average PEG ratio of 1.68 [6] Industry Context - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 206, placing it within the bottom 18% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Archrock Inc. (AROC) closed at $29.70, reflecting a +0.34% change from the previous day's closing price, outperforming the S&P 500's daily loss of 0.29% [1] - The natural gas compression services business has seen a 19.26% increase in shares over the last month, contrasting with the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52% [1] Financial Expectations - Archrock Inc. is expected to report an EPS of $0.31, representing a 47.62% increase compared to the same quarter last year [2] - Revenue is anticipated to be $326.08 million, indicating a 25.61% rise from the same quarter last year [2] Analyst Sentiment - Recent revisions to analyst forecasts for Archrock Inc. are important, as they reflect near-term business trends and analyst optimism regarding the company's profitability [3] - The Zacks Rank system, which integrates estimate changes, currently rates Archrock Inc. at 4 (Sell) [5] Valuation Metrics - Archrock Inc. has a Forward P/E ratio of 21.55, which is higher than the industry average of 15.35 [6] - The company has a PEG ratio of 1.8, compared to the industry average PEG ratio of 1.66 [6] Industry Context - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 231, placing it in the bottom 8% of over 250 industries [7]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

Core Viewpoint - The Zacks Oil and Gas - Field Services industry is facing challenges due to strict capital management by upstream energy firms, leading to decreased demand for oilfield services and a challenging outlook for the sector [1][6]. Industry Overview - The Zacks Oil and Gas - Field Services industry includes companies that provide support services to exploration and production players, such as manufacturing, repairing, and maintaining wells, drilling equipment, and leasing drilling rigs [3]. - These firms assist upstream energy players in locating oil and natural gas, drilling, and evaluating hydrocarbon wells, making their business closely tied to upstream expenditures [4]. Current Trends - The industry is characterized by high volatility, with demand for oilfield services closely linked to exploration and production activities, which are influenced by commodity pricing [5]. - There is a noted slowdown in upstream spending, as companies prioritize stockholder returns over increasing output, leading to reduced drilling activities and lower demand for oilfield services [6]. - The success of companies in this sector is heavily dependent on their ability to navigate the energy transition landscape and meet decarbonization goals, as failing to do so could negatively impact cash flows [7]. Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 Zacks industries, indicating a bearish outlook [8][9]. - Over the past year, the industry has underperformed compared to the S&P 500 and the broader Zacks Oil - Energy sector, with an 11% increase versus the S&P 500's 28.5% and the sector's 19.4% growth [10]. Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 7.04X, compared to the S&P 500's 18.59X and the sector's 3.90X, reflecting the capital-intensive nature of the companies involved [11][12]. Company Highlights - **Archrock Inc.**: Recently acquired Total Operations and Production Services, enhancing its capacity with a fully electric compression fleet and positioning itself as a leader in electrified natural gas compression [13]. - **Baker Hughes Co.**: Focused on growth through advanced LNG and energy technologies, with significant involvement in the Louisiana LNG project and expansion in Namibia, aiming to meet rising global energy demand [14]. - **Smart Sand Inc.**: A leading manufacturer of Northern White sand, known for its quality and cost-effectiveness, serving as a premium proppant in hydraulic fracturing processes [15].

Industry Overview - The Zacks Oil and Gas - Field Services industry is facing challenges due to strict capital management by upstream energy firms, leading to decreased demand for oilfield services [1] - Companies in this sector must effectively navigate the evolving energy transition landscape to succeed, as failing to meet energy transition objectives could negatively impact cash flow [1][6] - The industry comprises companies providing support services to exploration and production players, including well maintenance, drilling equipment leasing, and seismic testing [3] Current Trends - The demand for oilfield services is highly volatile and closely tied to exploration and production activities, making companies susceptible to commodity price fluctuations [4] - There has been a slowdown in drilling activities as upstream players prioritize stockholder returns over increasing output, resulting in lower demand for oilfield services [5] - The industry's ability to adapt to decarbonization and low-carbon technologies is crucial for maintaining cash flow [6] Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 Zacks industries, indicating a bearish outlook [7][8] - Over the past year, the industry has underperformed compared to the S&P 500 and the broader Zacks Oil - Energy sector, with an 11% increase versus 28.5% and 19.4% respectively [9] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 7.04X, compared to the S&P 500's 18.59X and the sector's 3.90X [11] - Historical trading ranges for the industry have been between 1.01X and 12.73X over the past five years, with a median of 8.16X [11] Key Companies - **Archrock Inc (AROC)**: Recently acquired Total Operations and Production Services, enhancing its capacity with a fully electric compression fleet and positioning itself as a leader in electrified natural gas compression [13] - **Baker Hughes Company (BKR)**: Focused on growth through advanced LNG and energy technologies, with significant involvement in the Louisiana LNG project and expansion in Namibia [15] - **Smart Sand Inc (SND)**: A leading manufacturer of Northern White sand, known for its quality and cost-effectiveness, serving as a premium proppant in hydraulic fracturing [16]

Company Performance - Archrock Inc. (AROC) closed at $25.36, down 1.93% from the previous trading day, underperforming the S&P 500 which lost 1.11% [1] - Over the past month, Archrock's shares gained 2.13%, outperforming the Oils-Energy sector which declined by 11.62% and the S&P 500's loss of 1.7% [1] Earnings Projections - The upcoming earnings report for Archrock is projected to show earnings per share (EPS) of $0.31, a 47.62% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $326.08 million, reflecting a 25.61% increase from the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Archrock indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] - The Zacks Rank system, which reflects these estimate changes, currently ranks Archrock at 4 (Sell) [5] Valuation Metrics - Archrock has a Forward P/E ratio of 18.83, which is higher than the industry average of 15.42, indicating it is trading at a premium [6] - The company has a PEG ratio of 1.57, compared to the industry average PEG ratio of 1.16, suggesting a higher expected earnings growth trajectory [7] Industry Context - The Oil and Gas - Field Services industry, to which Archrock belongs, has a Zacks Industry Rank of 200, placing it in the bottom 21% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Analyst Recommendations - Archrock Inc. (AROC) has an average brokerage recommendation (ABR) of 1.29, indicating a consensus between Strong Buy and Buy [2] - The current ABR is based on recommendations from seven brokerage firms, with five Strong Buy and two Buy, representing 71.4% and 28.6% of all recommendations respectively [2] Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [4] - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9] Group 3: Zacks Rank vs. ABR - The Zacks Rank, which classifies stocks based on earnings estimate revisions, is a more reliable indicator of near-term price performance compared to ABR [7][10] - Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not be up-to-date [11] Group 4: Current Earnings Estimates for Archrock Inc. - The Zacks Consensus Estimate for Archrock Inc. has remained unchanged at $1 over the past month, indicating steady analyst views on the company's earnings prospects [12] - Due to the unchanged consensus estimate and other factors, Archrock Inc. currently holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [13]

Core Viewpoint - Archrock Inc. has shown strong stock performance recently, with a return of +12.7% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.5% change, while the Zacks Oil and Gas - Field Services industry has declined by 3.2% [2] Earnings Estimates - For the current quarter, Archrock Inc. is expected to report earnings of $0.31 per share, reflecting a year-over-year increase of +47.6%, although the Zacks Consensus Estimate has decreased by -7% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $1, indicating a year-over-year change of +44.9%, with a recent adjustment of -3.1% [5] - For the next fiscal year, the consensus earnings estimate is $1.37, representing a +37.3% change from the previous year, but has seen a decrease of -8.7% recently [6] Revenue Growth - The consensus sales estimate for the current quarter is $326.08 million, which indicates a year-over-year increase of +25.6% [9] - For the current fiscal year, the revenue estimate is $1.16 billion, reflecting a +16.9% change, while the next fiscal year's estimate is $1.37 billion, indicating an +18.5% change [9] Recent Performance - In the last reported quarter, Archrock Inc. achieved revenues of $292.16 million, a year-over-year increase of +15.3%, and an EPS of $0.28 compared to $0.20 a year ago [10] - The company reported a revenue surprise of -0.27% against the Zacks Consensus Estimate and an EPS surprise of 0% [10] - Over the last four quarters, Archrock Inc. has surpassed consensus EPS estimates twice and revenue estimates twice [10] Valuation - Archrock Inc. has a Zacks Value Style Score of C, indicating that it is trading at par with its peers [14] - The evaluation of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining whether the stock is fairly valued [12][13] Conclusion - The analysis suggests that Archrock Inc. may perform in line with the broader market in the near term, as indicated by its Zacks Rank 3 [15]

Archrock Compression (NYSE: AROC ) reported third quarter earnings on Monday November 11th. The results were positive with improvements in both revenue and gross margin, showing the immediate impact of the TOPS acquisition after just one month of ownership duringI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producin ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Archrock Inc. (AROC) .Archrock Inc. currently has an average brokerage recommendation (ABR) of ...