2024-07-09 07:30:57 ET
Summary
- Archrock stock has surged 175.4% since June 2019, outperforming the S&P 500.
- The company's revenue and profitability have grown significantly, with a focus on fleet utilization and higher horsepower units.
- Management expects continued growth in revenue and profitability, driven by underinvestment in the industry and rising natural gas demand.
It's always interesting to look back a few years and see how certain investment calls played out. One example of this involves a natural gas compression business by the name of Archrock ( AROC ). Back in June of 2019, I wrote a bullish article about the business. The main topic of that article was the company's acquisition of Elite Compression in a deal valued at $410 million. Even though I said that the acquisition was sensible, I said that it was not special. Ultimately though, I felt as though the company as a whole was attractive enough to warrant a ‘buy’ rating....
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For further details see:
Archrock: A Solid Bet On A Growing Industry And Favorable Market Dynamics