Why the high growth investor may take a look at NYSE:AROC.

Our stockscreener has identified a possible breakout setup on ARCHROCK INC (NYSE:AROC). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:AROC for potential opportunities.

Analyzing the Technical Aspects

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall AROC gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, AROC is showing a nice and steady performance.

• 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 91% 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 58 other stocks in this industry. AROC outperforms 84% 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 23.54 - 27.05 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of AROC

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:AROC exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

AROC has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

What matters for high growth investors.

• 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
• ARCHROCK INC has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With a favorable trend in its free cash flow (FCF) over the past year, ARCHROCK INC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• With a solid Return on Equity (ROE) of 11.11%, ARCHROCK INC exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• With a current Debt-to-Equity ratio at 1.73, ARCHROCK INC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• The ownership composition of ARCHROCK INC reflects a balanced investor ecosystem, with institutional shareholders owning 84.13%. This indicates a broader market participation and potential for increased trading liquidity.
• ARCHROCK INC has exhibited strong Relative Strength(RS) in recent periods, with a current 91.79 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. ARCHROCK INC shows promising potential for continued price momentum.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.