(AROC) Archrock - Ratings and Ratios

Archrock, Inc. (NYSE: AROC) is a leading energy infrastructure company specializing in natural gas compression services. With a significant fleet of compression equipment, Archrock plays a crucial role in the midstream sector, serving oil and gas companies. The company operates through two main segments: Contract Operations and Aftermarket Services. In Contract Operations, Archrock excels in designing, installing, and maintaining compression equipment, utilizing advanced technology to optimize operations. Their Aftermarket Services provide a comprehensive range of parts, routine maintenance, and overhauls, ensuring customer equipment remains efficient. Formerly known as Exterran Holdings, Archrock rebranded in 2015 to reflect a strategic shift towards innovation and customer-centric solutions. Headquartered in Houston, a hub for energy companies, Archrock is well-positioned to serve key customers in the midstream sector.

Archrocks financial health is reflected in its market cap of $4.2 billion, with a P/E ratio of 22.89 and a forward P/E of 15.20, indicating anticipated earnings growth. The P/B ratio of 3.19 and P/S of 3.64 highlight a premium valuation relative to book value and sales. An RoE of 13.01 underscores the companys profitability. The stock currently trades at $24.39, with an ATR of 1.27, suggesting moderate volatility. Support levels at 21.0, 19.7, and 18.5 provide a potential floor, while resistance at 25.8 and 27.4 may cap near-term gains. The SMA 20 at 23.79 and SMA 50 at 25.13 indicate recent upward momentum nearing a resistance zone.

Over the next three months, Archrocks stock is expected to navigate a range-bound trajectory, influenced by technical resistance at 25.8 and 27.4 and support at 21.0 and 19.7. The moderate ATR of 1.27 suggests manageable volatility. Fundamentally, the lower forward P/E of 15.20 signals potential upside if earnings materialize as expected. Industry tailwinds from stable energy demand could bolster growth. Overall, Archrock is poised for sideways trading with potential for modest growth, supported by its strong operational base and strategic positioning in the energy sector.