A strong stock as of late has been Archrock Inc. (AROC) . Shares have been marching higher, with the stock up 21.4% over the past month. The stock hit a new 52-week high of $33.03 in the previous session. Archrock Inc. has gained 25.7% since the start of the year compared to the 16.6% gain for the Zacks Oils-Energy sector and the 28.6% return for the Zacks Oil and Gas - Field Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't m ...

Market Overview - Investor sentiment has become cautious due to concerns over stretched valuations in technology and healthcare sectors, leading to a sell-off primarily in software stocks [1] - Despite this turbulence, major indexes, including the S&P 500, remain near record levels, with a new high reached earlier in the week [2] - Investors are shifting focus beyond technology, looking into sectors linked to a strengthening economy and more reasonable valuations [2] Investment Strategy - With interest rates likely to remain high, focusing on stocks with relative price strength is essential for aligning with winning trends while avoiding weaker market segments [3] - Companies such as Archrock (AROC), Southwest Airlines (LUV), Ford Motor Company (F), Seagate Technology Holdings (STX), and Texas Capital Bancshares (TCBI) are recommended for consideration [3] Relative Price Strength Strategy - Earnings growth and valuation multiples are critical for assessing a stock's potential returns and its performance relative to peers [4] - Stocks that underperform despite strong earnings growth or valuation multiples may indicate underlying issues [4][5] - A focus on stocks outperforming the S&P 500 over various time frames (12 weeks, 4 weeks, and 1 week) is advised [8] Company Highlights - **Archrock (AROC)**: A U.S. energy infrastructure company with a market cap over $5 billion, expected earnings growth of 21.5% for 2026, and a 69% upward revision in earnings estimates over the past 60 days [10][11] - **Southwest Airlines (LUV)**: Expected EPS growth rate of 32.8% over three to five years, with a significant 336.6% year-over-year growth estimate for 2026 [12][13] - **Ford Motor Company (F)**: A leading automaker with a market cap of nearly $55 billion, showing a 49.2% increase in shares over the past year and a 9.3% upward revision in earnings estimates [14][15] - **Seagate Technology Holdings (STX)**: A data storage technology provider with a market cap of nearly $100 billion, experiencing a 333.6% surge in stock price over the past year and an 11.8% upward revision in earnings estimates [15][16] - **Texas Capital Bancshares (TCBI)**: A financial holding company with a 27.2% expected EPS growth rate over three to five years and a 12.1% year-over-year growth estimate for 2026 [17][18]

Core Viewpoint - Archrock, Inc. will host a conference call on February 25, 2026, to discuss its fourth quarter and full-year 2025 financial results and provide guidance for 2026 [1]. Group 1 - The conference call will begin at 8:30 a.m. Eastern Time and will follow the release of the fourth quarter 2025 earnings report [1]. - The call can be accessed via a live webcast on Archrock's website or by dialing specific phone numbers for U.S. and international participants [2]. - A replay of the webcast will be available for 90 days on Archrock's website after the call [2]. Group 2 - Archrock is an energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible practices [3]. - The company is headquartered in Houston, Texas, and is a leading provider of natural gas compression services in the U.S. [3]. - Archrock also offers aftermarket services to customers who own compression equipment [3].

Company Performance - Archrock Inc. (AROC) shares have increased by 11.1% over the past month, reaching a new 52-week high of $30.15 [1] - Year-to-date, Archrock has gained 13.7%, compared to a 19.5% gain for the Zacks Oils-Energy sector and a 30.2% return for the Zacks Oil and Gas - Field Services industry [1] Earnings and Revenue - Archrock has consistently beaten earnings estimates, reporting EPS of $0.42 against a consensus estimate of $0.41 in its last earnings report on October 28, 2025 [2] - For the current fiscal year, Archrock is expected to post earnings of $1.84 per share on revenues of $1.49 billion, with a year-over-year change of 15% [3] - For the next fiscal year, earnings are projected to be $2.14 per share on revenues of $1.58 billion, representing a year-over-year change of 6.18% [3] Valuation Metrics - Archrock currently trades at 16.1X current fiscal year EPS estimates, below the peer industry average of 20.4X [7] - On a trailing cash flow basis, the stock trades at 12.6X compared to the peer group's average of 7.8X [7] - The stock has a PEG ratio of 1.34, indicating it is not in the top echelon from a value perspective [7] Zacks Rank and Style Scores - Archrock holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, suggesting potential for further price appreciation [8] - The company has a Value Score of B, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Industry Comparison - The Oil and Gas - Field Services industry is in the top 27% of all industries, indicating favorable conditions for both Archrock and its peers [11] - Drilling Tools International Corp. (DTI), a peer, has a Zacks Rank of 1 (Strong Buy) and has seen a 47.3% increase over the past month, with expected earnings of $0.15 per share on revenues of $158.75 million [9][10]

Core Viewpoint - Archrock (AROC) is nearing a 52-week high with its share price approaching $30 per share, indicating a potential fair valuation for the company [1]. Company Summary - The rapid increase in Archrock's share price suggests that the company may be reaching a fair valuation based on current market conditions [1]. Industry Context - The article highlights the importance of evaluating equities in the power and energy sectors, emphasizing the potential for long-term investment opportunities in income-producing equities and rental real estate properties [1].

Company Performance - Archrock Inc. (AROC) closed at $29.59, with a daily increase of +1.44%, outperforming the S&P 500's loss of 0.43% [1] - Prior to the recent trading day, AROC shares had increased by 12.11%, surpassing the Oils-Energy sector's gain of 11.13% and the S&P 500's gain of 0.89% [1] Financial Expectations - Archrock is expected to report an EPS of $0.4, reflecting a year-over-year increase of 14.29% [2] - Revenue is anticipated to be $376.66 million, which represents a 15.39% increase from the prior-year quarter [2] - Full-year estimates project earnings of $1.6 per share and revenue of $1.49 billion, indicating a year-over-year earnings growth of +52.38% and no change in revenue [3] Analyst Estimates and Valuation - Recent modifications to analyst estimates for Archrock indicate evolving short-term business trends, with positive revisions suggesting an optimistic outlook [4] - The Zacks Rank system, which includes estimate changes, currently ranks Archrock as 3 (Hold), with the EPS estimate remaining stagnant over the past month [6] - Archrock is trading at a Forward P/E ratio of 15.91, which is lower than the industry average of 20.43, suggesting a comparative discount [7] - The company has a PEG ratio of 1.33, while the Oil and Gas - Field Services industry has an average PEG ratio of 1.75, indicating Archrock's growth is being valued more favorably [8] Industry Context - The Oil and Gas - Field Services industry holds a Zacks Industry Rank of 64, placing it in the top 27% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the strength of the industry groups [9]

Core Insights - Oil prices have experienced significant gains this month, driven by geopolitical tensions and supply concerns, but have also faced sharp daily reversals, creating a challenging environment for energy investing [3][4] - Broker-recommended stocks such as Expand Energy, Energy Transfer LP, and Archrock, Inc. are highlighted as potential investment opportunities amid the volatility [1][9] Group 1: Oil Market Dynamics - Brent crude has recently surpassed $70 per barrel, while West Texas Intermediate has crossed the mid-$60s, indicating multi-month highs and double-digit percentage gains on a monthly basis [3] - Daily price swings have been notable, with prices pulling back by more than 1% in single sessions, influenced by risk-off sentiment, a strengthening U.S. dollar, and changing expectations regarding supply disruptions [4] - Escalating U.S.-Iran tensions have contributed to volatility, with fears of military action and potential disruptions to shipping routes increasing risk premiums [5] Group 2: Company Insights - **Expand Energy**: The largest natural gas producer in the U.S., focused on exploration and production, particularly in the Haynesville and Appalachian regions. It has a strong broker support with 25 out of 30 brokers recommending Strong Buy [13][15] - **Energy Transfer LP**: A major energy partnership with a diversified midstream network, owning extensive infrastructure across the U.S. It has no Strong Sell ratings and a favorable average brokerage recommendation of 1.50 [17][18] - **Archrock, Inc.**: A leading energy infrastructure company specializing in midstream natural gas compression, operating the largest compression fleet in the U.S. It has a favorable average brokerage recommendation of 1.55, with seven out of eleven brokers rating it as Strong Buy [21][22]

Core Viewpoint - Archrock, Inc. has successfully closed a private offering of $800 million in senior notes, which will be used to repay a portion of its outstanding borrowings under its revolving credit facility [1]. Group 1: Offering Details - The offering consists of $800 million aggregate principal amount of 6.000% senior notes due 2034 [1]. - Archrock Services, L.P., a wholly-owned subsidiary of Archrock, is the issuer of the notes, with Archrock Partners Finance Corp. as the co-issuer [1]. - The notes have not been registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and non-U.S. persons [2]. Group 2: Company Overview - Archrock is an energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible practices [4]. - The company is headquartered in Houston, Texas, and is a leading provider of natural gas compression services in the U.S. [4]. - Archrock Services is recognized as a leading provider of natural gas compression services to the oil and natural gas industry throughout the United States [5].

Core Insights - The holiday season is a time for investors to reassess their finances and prepare for the upcoming year, with analysts making S&P 500 projections and gearing up for Q1 earnings [2] Group 1: SEI Investments Co. - SEI Investments is a $10 billion financial services firm transitioning from traditional wealth management to a "wealth-tech" company, providing technology solutions for banks and investors [4] - The SEI Wealth Platform is a key innovation helping legacy financial firms modernize, contributing to analysts' optimism about SEI's transformation [5] - Recent upgrades from Piper Sandler and Keefe, Bruyette, and Woods have moved SEI's stock rating from Neutral to Outperform, with Morgan Stanley raising its price target to $117, indicating a potential upside of nearly 23% [8] Group 2: Copa Holdings SA - Copa Holdings, with a market cap of $5.4 billion, is a significant player in the airline industry, benefiting from its strategic hub in Panama [10] - The company offers a dividend yield of 5.05% with a low payout ratio, and expects to expand capacity by up to 13% with new Boeing aircraft [11] - Analysts have rated Copa Holdings a Strong Buy, with an average price target of $160, suggesting potential upside of over 22% [14] Group 3: FB Financial Corp. - FB Financial, the parent of FirstBank, is focusing on high-growth southern markets following its acquisition by PNC Financial Services Group [15] - Analysts have given FB Financial Outperform ratings, with price targets ranging from $58 to $66, and the stock has already gained more than 5% at the start of 2026 [16] Group 4: Archrock Inc. - Archrock is an energy company specializing in natural gas compression equipment, generating recurring revenue from clients [19] - The company has a 3.27% dividend yield and a 55% payout ratio, making it attractive for income investors [20] - Archrock's stock has received a Strong Buy rating based on analyst upgrades, and it has recently broken above key moving averages, indicating positive momentum [22] Group 5: Serve Robotics Inc. - Serve Robotics is a $1.17 billion company focused on last-mile autonomous delivery, partnering with Uber Eats and DoorDash [23] - Analysts have set high price targets for Serve Robotics, with Oppenheimer rating it a Buy at $20 and Northland Capital Markets raising their target to $26 [25] - The stock has recently broken out of a downtrend, supported by positive technical indicators [25]

Core Viewpoint - Archrock, Inc. announced an upsized private offering of $800 million in senior notes with a 6.000% interest rate due in 2034, aimed at repaying part of its outstanding borrowings under its revolving credit facility [1][2]. Group 1: Offering Details - The offering consists of $800 million aggregate principal amount of senior notes priced at par, expected to close on January 21, 2026, pending customary closing conditions [1]. - Archrock Partners Finance Corp. will co-issue the notes alongside Archrock Services, L.P., a wholly-owned subsidiary of Archrock [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to repay a portion of the outstanding borrowings under Archrock's revolving credit facility [2]. Group 3: Company Overview - Archrock is an energy infrastructure company focused on midstream natural gas compression, providing services to help customers produce, compress, and transport natural gas safely and responsibly [5]. - Archrock Services is a leading provider of natural gas compression services in the oil and natural gas industry across the United States [6].