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
) as a "dead cat bounce" (down big yesterday but up big today) 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 $37.7 million.
- ROSE has traded 60,243 shares today.
- ROSE is up 3.3% today.
- ROSE was down 6.9% yesterday.
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-Ideas
More details on ROSE:
Rosetta Resources Inc., an independent exploration and production company, is engaged in the acquisition and development of onshore energy resources in the United States. ROSE has a PE ratio of 7.0. Currently there are 9 analysts that rate Rosetta Resources a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Rosetta Resources has been 2.0 million shares per day over the past 30 days. Rosetta has a market cap of $1.1 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 11% with 3.85 days to cover. Shares are down 17.3% year-to-date as of the close of trading on Tuesday.
rates Rosetta Resources as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- ROSE's very impressive revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues leaped by 87.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ROSETTA RESOURCES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ROSETTA RESOURCES INC increased its bottom line by earning $3.43 versus $3.01 in the prior year. For the next year, the market is expecting a contraction of 30.0% in earnings ($2.40 versus $3.43).
- The debt-to-equity ratio of 1.29 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ROSE has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ROSETTA RESOURCES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Rosetta Resources Ratings Report.