Exploring ARCHROCK INC (NYSE:AROC)'s high growth characteristics.

Our stock screener has flagged ARCHROCK INC (NYSE:AROC) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:AROC for potential movement.

Technical analysis of AROC

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall AROC gets a technical rating of 7 out of 10. AROC was one of the better performers in the overall market, it is still ok in the medium term time frame, but very the very recent evolution is negative.

• When comparing the yearly performance of all stocks, we notice that AROC is one of the better performing stocks in the market, outperforming 89% of all stocks. On top of that, AROC also shows a nice and consistent pattern of rising prices.
• AROC is one of the better performing stocks in the Energy Equipment & Services industry, it outperforms 89% of 59 stocks in the same industry.
• Both the short term and long term trends are neutral. So this is not the most entertaining stock around.
• AROC is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month AROC has a been trading in the 22.43 - 28.45 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of AROC

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, AROC has a 7 as its setup rating, indicating its current consolidation status.

AROC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 25.72. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for AROC in the last couple of days, which is a good sign.

High Growth Analysis for AROC

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. AROC scores a 6 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), AROC highlights its ability to generate increasing profitability, showcasing a 61.9% growth.
• The earnings per share (EPS) growth of AROC is accelerating: the current Q2Q growth of 61.9% is above the previous quarter Q2Q growth of 10.0%. Earnings momentum and acceleration are key for high growth systems.
• AROC has experienced 56.72% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The EPS of AROC has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• AROC has achieved 25.74% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• The sales growth of AROC is accelerating: the current Q2Q growth of 25.74% is above the previous quarter Q2Q growth of 15.31%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• AROC has seen a 25.61% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.

Profitability & Financial Strength

• AROC has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With positive growth in its profit margin over the past year, AROC showcases its ability to improve profitability.
• With positive growth in its free cash flow (FCF) over the past year, AROC showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• AROC showcases a robust Return on Equity (ROE) of 12.84%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt/Equity ratio of 1.66, AROC appears to have a manageable debt load relative to its assets.

Market Strength

• The Relative Strength (RS) of AROC has consistently been strong, with a current 89.01 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.