Archrock Inc. (AROC) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][9] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][10] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] - The Momentum Score capitalizes on price trends and earnings outlook changes, using factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines the three Style Scores to identify stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to facilitate portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] Stock Example: Archrock Inc. (AROC) - Archrock has transitioned to a pure-play compression services company, focusing on natural gas production, processing, and transportation, with an emphasis on operational transformation [12] - AROC holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 15.36 [13] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.02 to $1.57 per share, with an average earnings surprise of +6.5% [13][14]