Archrock Stock Buy Hold or Sell Recommendation

AROC
 Stock
  

USD 7.61  0.02  0.26%   

Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Archrock is 'Strong Hold'. Macroaxis provides Archrock buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Archrock positions. The advice algorithm takes into account all of Archrock's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Archrock's buy-and-hold perspective. Please continue to Archrock Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Archrock and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Archrock.

Execute Archrock Buy or Sell Advice

The Archrock recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Archrock. Macroaxis does not own or have any residual interests in Archrock or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Archrock's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell ArchrockBuy Archrock
Strong Hold

Volatility

Somewhat reliableDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

Very StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Archrock has a Risk Adjusted Performance of (0.08), Jensen Alpha of (0.18), Total Risk Alpha of (0.17) and Treynor Ratio of (0.22)
We provide trade advice to complement the prevailing expert consensus on Archrock. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Archrock is not overpriced, please confirm all Archrock fundamentals, including its operating margin, price to earning, net income, as well as the relationship between the shares owned by insiders and revenue . Given that Archrock has a price to earning of 47.59 X, we suggest you to validate Archrock market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Archrock Trading Alerts and Improvement Suggestions

Archrock generated a negative expected return over the last 90 days
Archrock was previously known as ARCHROCK INC and was traded on New York Stock Exchange under the symbol EXH.
Archrock has a very strong financial position based on the latest SEC filings
Over 84.0% of the company shares are held by institutions such as insurance companies
Latest headline from simplywall.st: Archrock Is Due To Pay A Dividend Of 0.145 - Simply Wall St

Archrock current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Archrock analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Archrock analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price10.50
Target Median Price10.50
Target High Price11.00
Recommendation Mean1.50
Number Of Analyst Opinions2
Target Low Price10.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Archrock Returns Distribution Density

The distribution of Archrock's historical returns is an attempt to chart the future uncertainty of Archrock's future price movements. The chart of the probability distribution of Archrock stock daily returns describes the distribution of returns around its average expected value. We use Archrock price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Archrock returns is essential to provide solid investment advice for Archrock stock.
Mean Return-0.18Value At Risk-5.96
Potential Upside4.00Standard Deviation2.74
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Archrock historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Archrock Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(174.74 M)(285.18 M)(304.24 M)(121.39 M)(68.32 M)(73.72 M)
Depreciation Amortization and Accretion188.56 M174.95 M191.01 M196.62 M182.83 M190.8 M
Net Cash Flow or Change in Cash and Cash Equivalents7.4 M(4.93 M)(1.93 M)(2.59 M)472 K719.73 K
Issuance Purchase of Equity Shares58.85 M(692 K)(1.24 M)(1.12 M)1.65 M1.69 M
Issuance Repayment of Debt Securities(43.05 M)105.86 M301.07 M(160.64 M)(160.95 M)(165.19 M)
Payment of Dividends and Other Cash Distributions(34.06 M)(58.29 M)(78.53 M)(88.83 M)(89.34 M)(96.4 M)
Net Cash Flow from Financing(19.77 M)54.05 M222.49 M(252.84 M)(253.03 M)(259.69 M)
Net Cash Flow from Investing(174.49 M)(284.92 M)(514.56 M)(85.03 M)16.11 M17.38 M
Net Cash Flow from Operations201.66 M225.95 M290.15 M335.28 M237.4 M248.93 M
Share Based Compensation8.46 M7.39 M8.11 M10.55 M11.34 M10.39 M

Archrock Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Archrock or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Archrock stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Archrock stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.18
β
Beta against DOW0.88
σ
Overall volatility
2.67
Ir
Information ratio -0.07

Archrock Volatility Alert

Archrock exhibits very low volatility with skewness of -0.5 and kurtosis of 0.16. However, we advise investors to further study Archrock technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Archrock's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Archrock's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Archrock Implied Volatility

Archrock's implied volatility" href="/stock-options/AROC/Archrock">Archrock's implied volatility exposes the market's sentiment of Archrock stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Archrock's implied volatility" href="/stock-options/AROC/Archrock">Archrock's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Archrock stock will not fluctuate a lot when Archrock's options" href="/stock-options/AROC/Archrock">Archrock's options are near their expiration.

Archrock Fundamentals Vs Peers

Comparing Archrock's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Archrock's direct or indirect competition across all of the common fundamentals between Archrock and the related equities. This way, we can detect undervalued stocks with similar characteristics as Archrock or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Archrock's fundamental indicators could also be used in its relative valuation, which is a method of valuing Archrock by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Archrock to competition
FundamentalsArchrockPeer Average
Return On Equity2.87 %(0.31) %
Return On Asset3.10 %(0.14) %
Profit Margin3.29 %(1.27) %
Operating Margin39.38 %(5.51) %
Current Valuation2.84 B16.62 B
Shares Outstanding154.05 M571.82 M
Shares Owned by Insiders13.52 %10.09 %
Shares Owned by Institutions83.80 %39.21 %
Number of Shares Shorted5.68 M4.71 M
Price to Earning47.59 X28.72 X
Price to Book1.38 X9.51 X
Price to Sales1.59 X11.42 X
Revenue783.23 M9.43 B
Gross Profit422.54 M27.38 B
EBITDA308.47 M3.9 B
Net Income24.25 M570.98 M
Cash and Equivalents1.26 M2.7 B
Cash per Share0.01 X5.01 X
Total Debt1.53 B5.32 B
Debt to Equity1.76 %48.70 %
Current Ratio1.17 X2.16 X
Book Value Per Share5.87 X1.93 K
Cash Flow from Operations236.42 M971.22 M
Short Ratio5.82 X4.00 X
Earnings Per Share0.17 X3.12 X
Price to Earnings To Growth(2.19) X4.89 X
Number of Employees1.1 K18.84 K
Beta1.79-0.15
Market Capitalization1.25 B19.03 B
Total Asset2.71 B29.47 B
Retained Earnings(2.42 B)9.33 B
Working Capital150.2 M1.48 B
Current Asset285.3 M9.34 B
   Sale by Old Ocean Reserves Lp of 3318 shares of Archrock [view details]

Archrock Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Archrock . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution532.82
Daily Balance Of Power0.2222
Rate Of Daily Change1.0
Day Median Price7.62
Day Typical Price7.61
Market Facilitation Index0.0
Price Action Indicator0.005

About Archrock Buy or Sell Advice

When is the right time to buy or sell Archrock? Buying financial instruments such as Archrock Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Archrock investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables144.87 M104.42 M104.93 M107.69 M
Inventories74.47 M63.67 M72.87 M74.79 M

Use Investing Ideas to Build Portfolios

In addition to having Archrock in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Top FinTech Thematic Idea Now

Top FinTech
Top FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The Top FinTech theme has 80 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Top FinTech Theme or any other thematic opportunities.
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Please continue to Archrock Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Archrock information on this page should be used as a complementary analysis to other Archrock's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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Is Archrock's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archrock. If investors know Archrock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archrock listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.93
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0313
Return On Equity
0.0378
The market value of Archrock is measured differently than its book value, which is the value of Archrock that is recorded on the company's balance sheet. Investors also form their own opinion of Archrock's value that differs from its market value or its book value, called intrinsic value, which is Archrock's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archrock's market value can be influenced by many factors that don't directly affect Archrock's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archrock's value and its price as these two are different measures arrived at by different means. Investors typically determine Archrock value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archrock's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.