Archrock has rallied to its 50-day moving average within a clearly formed base. Archrock stock is Tuesday's selection for IBD 50 Stocks To Watch.
Shares are in a consolidation with a buy point of 30.44. The buy point is a new high for the stock after shares recovered from a slump of more than a decade. Meanwhile, the early-stage base can lead to higher gains after a strong breakout.
Shares have risen amid news of President Donald Trump's "energy emergency." The provider of compression services for natural gas production and pipelines boasts an ideal Composite Rating and EPS Rating of 99 while the Relative Strength Rating is also a strong 92.
Sales and earnings have grown over the past eight quarters. During the fourth quarter ended Dec. 31, sales grew 26% to $326.4 million while earnings per share of 35 cents showed a 67% increase from the prior year.
Archrock Stock Earnings: Rising Profits Seen
Analysts see profits increasing further in 2025 and 2026. In 2025, profit estimates suggest a 41% growth with earnings per share of $1.60. Wall Street also expects a 17% increase in profits in 2026 with earnings per share of $1.88.
Mutual funds own 60% of outstanding shares. Funds have also been net buyers of Archrock stock in the past 13 weeks, going by the Accumulation/Distribution Rating of B-. The stock is also in strong demand over the past 50 trading days and has an Up/Down Volume Ratio of 1.7.
According to IBD Stock Checkup, Archrock stock ranks first in the oil-and-gas machinery and equipment group.
In the Investor's Business Daily mutual fund index, the Invesco Discovery Fund (OPOCX) and the Federated Hermes Kaufmann Small Cap Fund (FKASX) hold shares of Archrock stock.
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