Rosetta Resources, Inc. (NASDAQ:ROSE)

Rosetta Resources, INC (ROSE) is an oil and gas company that specializes in oil and natural gas exploration, development, productions and acquisitions activities in the U.S. It currently has 183 employees, a market capitalization of $2.4 billion, with over $600 million is sales for 2012. Rosetta Resources is headquarter in Houston, Texas.

Rosetta Resources is a growing company with great fundamentals and at a fair price. It is a far superior company when compared to its competitors as well in many regards. See below for examples.

Its 30% profit margin is better than 80% of its competitors.
ROE of 25% shows its able to reinvest it's earnings better than 92% of competitors.
PE is comparable to industry, however far lower than its 5 year average
And all of this while having less debt than 60% of competitors

Key Statistics

PE:12.7
Forward PE: 9.3
PEG: 0.3
Profit margin: 30.1%
ROE: 25%
EPS: $3.60
Revenue for 2012: $632,000,000
Net Income 2012: $190,000,000
Percent of stock held by insiders: 13%
52 week range: $35.83-$54.61
Current price: $46.75

Although Rosetta Resources appears to be a great business at a fair price there are some things that could hold the stock back. The company's profits will fluctuate with the price of oil (when the price of oil is high profits will be high, and vise versa). Also the recent discussions of the Federal Reserve ending QE within a year would certainly have negative effects on the economy causing a lesser demand in oil and therefore, oil production. However, I find that the pros outweigh the cons in this case and can see this stock resulting in a homerun for any portfolio with a long term view.