Why Archrock Inc. (AROC) is a Top Value Stock for the Long-Term

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Archrock Inc. (AROC)

Archrock started as a broader energy services provider but has steadily refined and refocused its business to become a premier pure-play compression services company, primarily supporting natural gas production, processing and transportation. Over the past decade, the company undertook an operational transformation aimed at improving performance, safety, customer service and environmental responsibility.

AROC sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Oil and Gas - Field Services industry's P/E of 16X, shares of Archrock Inc. are trading at a forward P/E of 15.3X. AROC also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 10.2X, and a Price/Sales ratio of 3.1X.

A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for AROC, while the Zacks Consensus Estimate has increased $0.02 to $1.57 per share. AROC also holds an average earnings surprise of 6.5%.

AROC should be on investors' short list because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Archrock, Inc. (AROC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments