RECOMMENDATION We rate INERGY LP (NRGY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. HIGHLIGHTS NRGY's revenue growth trails the industry average of 29.3%. Since the same quarter one year prior, revenues rose by 17.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. INERGY LP's earnings per share declined by 14.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INERGY LP turned its bottom line around by earning $0.72 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus $0.72). The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, INERGY LP's return on equity is significantly below that of the industry average and is below that of the S&P 500. The gross profit margin for INERGY LP is currently lower than what is desirable, coming in at 28.60%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 12.70% is above that of the industry average. Net operating cash flow has declined marginally to $88.60 million or 6.73% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.