Trade-Ideas: Rosetta Resources (ROSE) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Rosetta Resources (ROSE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Rosetta Resources as such a stock due to the following factors:
- ROSE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.5 million.
- ROSE has traded 807,820 shares today.
- ROSE is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ROSE with the Ticky from Trade-Ideas. See the FREE profile for ROSE NOW at Trade-IdeasMore details on ROSE: Rosetta Resources Inc., an independent exploration and production company, engages in the acquisition and development of onshore energy resources in the United States. It owns producing and non-producing oil and gas properties primarily located in South Texas, including the Eagle Ford area. ROSE has a PE ratio of 15.5. Currently there are 11 analysts that rate Rosetta Resources a buy, no analysts rate it a sell, and 4 rate it a hold.The average volume for Rosetta Resources has been 816,400 shares per day over the past 30 days. Rosetta has a market cap of $3.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.90 and a short float of 8.5% with 4.57 days to cover. Shares are up 17.3% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Rosetta Resources as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 71.49% to $139.90 million when compared to the same quarter last year. In addition, ROSETTA RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of -15.93%.
- The gross profit margin for ROSETTA RESOURCES INC is currently very high, coming in at 75.91%. Regardless of ROSE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ROSE's net profit margin of 31.85% significantly outperformed against the industry.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ROSETTA RESOURCES INC's earnings per share declined by 13.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ROSETTA RESOURCES INC increased its bottom line by earning $3.01 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($3.95 versus $3.01).
- You can view the full Rosetta Resources Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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