Rosetta Resources (ROSE) Downgraded From Buy to Hold

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. aTheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. aClick here to learn more. NEW YORK (TheStreet) -- Rosetta Resourcesa has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C. aTheStreet Ratings Team has this to say about their recommendation: "We rate ROSETTA RESOURCES INC (ROSE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Highlights from the analysis by TheStreet Ratings Team goes as follows: Net operating cash flow has slightly increased to $148.46 million or 6.11% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.54%. The gross profit margin for ROSETTA RESOURCES INC is currently very high, coming in at 74.67%. 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, the net profit margin of 6.53% trails the industry average. ROSE, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 6.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. 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. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 36.45%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 81.88% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. You can view the full analysis from the report here: ROSE 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.

Click to view a price quote on ROSE. Click to research the Energy industry.

from Latest TSC Headlines http://feeds.thestreet.com/~r/tsc/feeds/rss/latest-stories/~3/IovT0NtCTqg/rosetta-resources-rose-downgraded-from-buy-to-hold.html