Is NYSE:AROC a Fit for high Growth Investing Strategies?

A possible breakout setup was detected on ARCHROCK INC (NYSE:AROC) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:AROC.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to AROC. Both in the recent history as in the last year, AROC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that AROC is one of the better performing stocks in the market, outperforming 92% of all stocks. We also observe that the gains produced by AROC over the past year are nicely spread over this period.
• AROC is part of the Energy Equipment & Services industry. There are 59 other stocks in this industry. AROC outperforms 87% of them.
• AROC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month AROC has a been trading in the 23.33 - 27.05 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of AROC for a complete technical analysis.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:AROC scores a 8 out of 10:

AROC has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 25.50, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Some of the high growth metrics of NYSE:AROC highlighted

• The 3-year EPS growth of ARCHROCK INC (42.82%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• In the most recent financial report, ARCHROCK INC reported a 10.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• With a favorable trend in its operating margin over the past year, ARCHROCK INC demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The free cash flow (FCF) of ARCHROCK INC has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• The Return on Equity(ROE) of ARCHROCK INC is 11.11%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• Maintaining a Debt-to-Equity ratio of 1.73, ARCHROCK INC demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• ARCHROCK INC has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 92.32 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. ARCHROCK INC is well-positioned for potential price growth opportunities.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.