Rosetta Resources, Inc.
) 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.
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.
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.
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%.
With crude on the upswing, estimates have followed suit, with the current year adding 30 cents in the last two months to $1.53 and the next-year estimate up 64 cents in the same time to $2.58, a bullish 69% growth projection.
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.
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.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.