Artificial intelligence data centers need lots of computers that consume lots of energy. Analysts say that natural gas is a leading fuel for power plants to provide that energy. Top-ranked Archrock, which provides natural gas equipment and services to the oil industry, looks to be among the big winners in that market.
The IBD Relative Strength Rating for Archrock jumped nearly 20 points from 66 the day before to 85 Thursday on the company's strong prospects. Market research on the past 100 years of trades shows that the best stocks tend to have an 80 or higher RS Rating as they begin their biggest price moves.
Strong Profit Growth Seen For Archrock
Archrock's earnings grew 67% last quarter, to 35 cents per share, up from 40% growth in the prior report. Revenue growth also increased, from 15% to 26%, or $326.4 million. Analyst consensus is for a 48% hike in revenue for the current quarter, on 28% higher sales, according to FactSet.
Among its other ratings Archrock has a best-possible 99 Earnings Per Share Rating and a terrific 96 Composite Rating. The 96 rating puts Archrock among the top 4% of stocks overall. It also boasts a top-notch A SMR Rating (sales + profit margins + return on equity).
Like many companies as the market correction continues it has a weak D- Accumulation/Distribution Rating, showing that funds are selling more shares than buying. Look for that to improve to a C+ or better rating.
Hone Your Stock-Picking Skills By Focusing On These Factors
No. 1 In Its Industry
Houston-based Archrock is working on a consolidation with a 30.44 entry. See if the stock can break out in volume at least 40% above average.
Watchlist candidate Archrock holds the No. 1 rank among its peers in the 21-stock Oil & Gas-Machinery/Equipment industry group. Baker Hughes and DNOW are also among the group's highest-rated stocks.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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