Rosetta Resources, Inc. - Momentum

Rosetta Resources, Inc. (ROSE) just hit a new multi-year high at $43.47 as crude spikes higher on turmoil in the Middle East. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock has plenty of upward momentum.

Company Description

Rosetta Resources, Inc. operates as a domestic explorer of natural gas and crude and has a market cap of $2.27 billion.

Higher crude prices have given the domestic explorers a big boost, on display when Rosetta reported strong Q3 results last November that came in ahead of expectations.

Third-Quarter Results

Revenue for the period was up 25% from last year to $80 million. Earnings also looked good, coming in at 17 cents, 6% ahead of the Zacks Consensus Estimate.

The strong performance was driven by increased production, up 19% from last year, and higher prices in both crude and liquid natural gases.

Financial Profile

With Rosetta taking an aggressive approach to new opportunities, its balance sheet looks a little heavy, with cash and equivalents of $24 million, against total debt of $360 million, up $71 million from last year, Its debt-to-equity level of 66.7% is above its peer average of 47.6%.

Estimates

We haven’t seen much movement in estimates since the good quarter, with the current year up 3 cents to 59 cents in the last three months. The next-year estimate jumped big on the news, adding 30% to $1.53, a bullish 149% growth projection.

Valuation

In light of recent gains, the valuation picture looks a bit hot, with a forward P/E of 27X against its peer average of 21X.

12-Month Chart

On the chart, ROSE has been strong for the last month, recently hitting a new 52-week high at $43.47 as crude rallies on turmoil in the Middle East. Look for support from the long-term trend on any weakness, take a look below.