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Archrock - AI Stock Analysis
Analysis generated April 22, 2025
Archrock, Inc. is a notable player in the natural gas industry, focusing on providing natural gas compression services to supple upstream and midstream customers in the United States. With its comprehensive range of services, innovative solutions, and a robust commitment to operational excellence, Archrock plays a crucial role in enhancing customer productivity while ensuring minimized environmental impact. The company’s core competencies lie in its unparalleled capabilities and innovative approaches to helping clients maximize their operations and improve production efficiencies.
Fundamental Analysis
For the latest quarter, Archrock reported a revenue of $326M, marking an increase of 11.72% from the previous quarter and a rise of 25.74% year over year. This consistent growth signals strong market demand and effective business strategies.
The company’s net income for the quarter was $60M, a significant increase of 59.29% compared to the preceding quarter, and an impressive increase of 81.07% from the same quarter last year. This robust net income growth underscores improved operational efficiency and cost management.
Archrock’s EBITDA for the quarter stood at $176M, marking an increase of 32.70% from the previous quarter and an even more substantial increase of 53.81% year over year. High EBITDA growth is indicative of strong earnings performance and propensity for sustaining financial health.
The current P/E ratio is 22.89, placing it within a standard range. This neither reflects overvaluation nor undervaluation, suggesting that the current stock price is justified based on earnings.
Technical Analysis
Today's stock price is $23.12, reflecting a decrease of 12.46% compared to a month ago, but an increase of 19.61% year over year. The pricing trend remains bullish.
The SMA10 is at 23.53, slightly up from the previous 23.50, suggesting a potential upward trend. The Relative Strength Index (RSI) is 57.2, which is a neutral condition indicating neither overbought nor oversold scenarios. This balanced RSI also suggests stability in the stock's movement.
Alternative Data Analysis
Archrock currently has 84 open positions, an increase of 45% over the last couple of months, which indicates the company is positioning itself for growth. Employee sentiment is high, with 89% of employees having a positive outlook on the business. This can be seen as a positive indicator of internal health and employee satisfaction.
Customer engagement metrics indicate an estimated 9,000 visitors to the Archrock webpage, up 29% in recent months, which may signify rising interest and potential customer acquisition. However, Archrock has 140 followers on their Twitter page with no significant changes recently, indicating stable social media engagement.
Additionally, according to AltIndex’s AI score, which predicts stock performance using a mix of fundamental, technical, and alternative data, Archrock scores an 80, suggesting a buy signal.
Conclusion and Recommendation
Archrock Inc. presents a compelling investment opportunity given its robust fundamental growth, neutral yet positive technical indicators, and favorable alternative data metrics. The upward trend in revenue, net income, and EBITDA signifies strong financial health. Despite a recent dip in stock price, the long-term upward trend alongside high employee sentiment and increasing customer engagement signals a promising outlook. Considering all these aspects and the AI score of 80, the recommendation for Archrock stock would be to consider a buy given its strong potential for future growth.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
