TheStreet Ratings released rating changes on 54 U.S. common stocks for week ending September 30, 2011. 11 stocks were upgraded and 43 stocks were downgraded by our stock model.
See if (AMAT) is in our portfolio
Rating Change #10Applied Materials (AMAT) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.Highlights from the ratings report include:
- AMAT's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 10.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although AMAT's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, AMAT has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
- 44.60% is the gross profit margin for APPLIED MATERIALS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.10% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, APPLIED MATERIALS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- AMAT has underperformed the S&P 500 Index, declining 9.08% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
Rating Change #9
Avon Products Inc (AVP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- AVP's revenue growth has slightly outpaced the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Personal Products industry average. The net income increased by 23.0% when compared to the same quarter one year prior, going from $167.60 million to $206.20 million.
- AVON PRODUCTS has improved earnings per share by 23.7% 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, AVON PRODUCTS reported lower earnings of $1.35 versus $1.44 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.35).
- Currently the debt-to-equity ratio of 1.59 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, AVP has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $119.80 million or 46.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Rating Change #8
BP (BP) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- BP's revenue growth has slightly outpaced the industry average of 37.4%. Since the same quarter one year prior, revenues rose by 37.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 132.8% when compared to the same quarter one year prior, rising from -$17,150.00 million to $5,620.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, BP PLC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- BP has underperformed the S&P 500 Index, declining 7.48% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for BP PLC is currently extremely low, coming in at 13.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.50% trails that of the industry average.
Rating Change #7
City Holding Company (CHCO) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation.
Highlights from the ratings report include:
- The gross profit margin for CITY HOLDING CO is currently very high, coming in at 84.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.90% is above that of the industry average.
- CHCO, with its decline in revenue, underperformed when compared the industry average of 19.8%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- CITY HOLDING CO's earnings per share declined by 5.9% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CITY HOLDING CO reported lower earnings of $2.48 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($2.56 versus $2.48).
- Net operating cash flow has decreased to $9.06 million or 27.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CHCO has underperformed the S&P 500 Index, declining 9.76% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
Rating Change #6
Coherent (COHR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- COHR's revenue growth has slightly outpaced the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 26.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- COHR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, COHR has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
- COHERENT INC has improved earnings per share by 29.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COHERENT INC turned its bottom line around by earning $1.47 versus -$1.46 in the prior year. This year, the market expects an improvement in earnings ($3.37 versus $1.47).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income increased by 32.1% when compared to the same quarter one year prior, rising from $14.40 million to $19.02 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
Rating Change #5
Dow Chemical (DOW) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- DOW CHEMICAL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DOW CHEMICAL increased its bottom line by earning $1.73 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $1.73).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 63.9% when compared to the same quarter one year prior, rising from $651.00 million to $1,067.00 million.
- DOW's debt-to-equity ratio of 0.83 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.04 is sturdy.
- The gross profit margin for DOW CHEMICAL is rather low; currently it is at 19.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.60% trails that of the industry average.
- Net operating cash flow has decreased to $798.00 million or 40.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Rating Change #4
Kelly Services (KELYA) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- KELLY SERVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, KELLY SERVICES INC turned its bottom line around by earning $0.70 versus -$3.01 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.70).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 382.1% when compared to the same quarter one year prior, rising from $3.90 million to $18.80 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market on the basis of return on equity, KELLY SERVICES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for KELLY SERVICES INC is rather low; currently it is at 16.60%. Regardless of KELYA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.30% trails the industry average.
- Net operating cash flow has decreased to -$1.80 million or 28.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Rating Change #3
Parkvale Financial Corporation (PVSA) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, PARKVALE FINANCIAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- PARKVALE FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PARKVALE FINANCIAL CORP reported poor results of -$3.30 versus -$1.90 in the prior year.
- Net operating cash flow has significantly increased by 191.24% to $5.72 million when compared to the same quarter last year. Despite an increase in cash flow of 191.24%, PARKVALE FINANCIAL CORP is still growing at a significantly lower rate than the industry average of 341.04%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Thrifts & Mortgage Finance industry average. The net income increased by 37.3% when compared to the same quarter one year prior, rising from $1.42 million to $1.95 million.
- Powered by its strong earnings growth of 55.55% and other important driving factors, this stock has surged by 158.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
Rating Change #2
Basic Sanitation Company of the State of Sa (SBS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- SBS's very impressive revenue growth is slightly higher than the industry average of 52.2%. Since the same quarter one year prior, revenues leaped by 59.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.79, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- 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. Compared to other companies in the Water Utilities industry and the overall market, CIA SANEAMENTO BASICO ESTADO's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 525.88% to $528.00 million when compared to the same quarter last year. In addition, CIA SANEAMENTO BASICO ESTADO has also vastly surpassed the industry average cash flow growth rate of 307.07%.
Rating Change #1
WSI Industries (WSCI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- WSCI's revenue growth has slightly outpaced the industry average of 36.3%. Since the same quarter one year prior, revenues rose by 40.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WSCI has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 133.33% and other important driving factors, this stock has surged by 43.82% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WSCI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 151.3% when compared to the same quarter one year prior, rising from $0.16 million to $0.40 million.
- Net operating cash flow has significantly increased by 848.36% to $1.15 million when compared to the same quarter last year. In addition, WSI INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of 87.54%.
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