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Is Archrock Inc. (AROC) a Great Value Stock Right Now?

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Zacks Equity Research
·2 min read
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Archrock Inc. (AROC) is a stock many investors are watching right now. AROC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 30.12. This compares to its industry's average Forward P/E of 49.24. Over the past 52 weeks, AROC's Forward P/E has been as high as 6,368.88 and as low as -3,779.59, with a median of 12.82.

Investors should also recognize that AROC has a P/B ratio of 1.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.72. Over the past 12 months, AROC's P/B has been as high as 1.75 and as low as 0.50, with a median of 1.07.

These are just a handful of the figures considered in Archrock Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AROC is an impressive value stock right now.


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