TheStreet Ratings released rating changes on 144 U.S. common stocks for week ending November 11, 2011. 97 stocks were upgraded and 47 stocks were downgraded by our stock model.
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Rating Change #10Huntsman Corporation (HUN) 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 23.9%. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Chemicals industry and the overall market, HUNTSMAN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- HUNTSMAN CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, HUNTSMAN CORP swung to a loss, reporting -$0.09 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus -$0.09).
- Net operating cash flow has significantly decreased to $24.00 million or 73.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 161.8% when compared to the same quarter one year ago, falling from $55.00 million to -$34.00 million.
Rating Change #9
Ashland Inc (ASH) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The revenue fell significantly faster than the industry average of 14.2%. Since the same quarter one year prior, revenues fell by 22.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- ASH's debt-to-equity ratio of 0.93 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 1.28 is sturdy.
- ASHLAND INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ASHLAND INC swung to a loss, reporting -$0.66 versus $3.26 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus -$0.66).
- The gross profit margin for ASHLAND INC is rather low; currently it is at 21.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.20% is significantly below that of the industry average.
- Net operating cash flow has decreased to $149.00 million or 28.70% 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
Computer Sciences Corporation (CSC) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- COMPUTER SCIENCES CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, COMPUTER SCIENCES CORP reported lower earnings of $4.50 versus $5.27 in the prior year. For the next year, the market is expecting a contraction of 1.1% in earnings ($4.45 versus $4.50).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the IT Services industry. The net income has significantly decreased by 1663.6% when compared to the same quarter one year ago, falling from $184.00 million to -$2,877.00 million.
- 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 IT Services industry and the overall market, COMPUTER SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for COMPUTER SCIENCES CORP is rather low; currently it is at 18.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -72.40% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $6.00 million or 98.50% 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 #7
Embraer (ERJ) 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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 30.8%. 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.
- Net operating cash flow has significantly increased by 519.79% to $161.20 million when compared to the same quarter last year. In addition, EMBRAER SA has also vastly surpassed the industry average cash flow growth rate of -30.08%.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry. The net income has significantly decreased by 98.1% when compared to the same quarter one year ago, falling from $98.50 million to $1.90 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, EMBRAER SA's return on equity is significantly below that of the industry average and is below that of the S&P 500.
Rating Change #6
Marriott International Inc(MAR) 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, notable return on equity and good cash flow from operations. 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 poor debt management.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 8.5%. 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.
- 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 Hotels, Restaurants & Leisure industry and the overall market, MARRIOTT INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- MARRIOTT INTL INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, MARRIOTT INTL INC turned its bottom line around by earning $1.21 versus -$0.99 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.21).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 315.7% when compared to the same quarter one year ago, falling from $83.00 million to -$179.00 million.
- The debt-to-equity ratio is very high at 7.22 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.41, which clearly demonstrates the inability to cover short-term cash needs.
Rating Change #5
BT Group PLC (BT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- Compared to other companies in the Diversified Telecommunication Services industry and the overall market, BT GROUP PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BT GROUP PLC has improved earnings per share by 13.4% 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, BT GROUP PLC increased its bottom line by earning $2.97 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($3.87 versus $2.97).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Diversified Telecommunication Services industry average, but is less than that of the S&P 500. The net income increased by 16.1% when compared to the same quarter one year prior, going from $649.93 million to $754.77 million.
- BT, with its decline in revenue, underperformed when compared the industry average of 11.8%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
Rating Change #4
FedEx Corporation (FDX) has been upgraded by TheStreet Ratings from hold to buy. 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- FDX's revenue growth has slightly outpaced the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FDX's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
- FEDEX CORP has improved earnings per share by 21.7% 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, FEDEX CORP increased its bottom line by earning $4.57 versus $3.77 in the prior year. This year, the market expects an improvement in earnings ($6.27 versus $4.57).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Air Freight & Logistics industry average. The net income increased by 22.1% when compared to the same quarter one year prior, going from $380.00 million to $464.00 million.
- Net operating cash flow has slightly increased to $860.00 million or 8.04% when compared to the same quarter last year. Despite an increase in cash flow of 8.04%, FEDEX CORP is still growing at a significantly lower rate than the industry average of 82.55%.
Rating Change #3
EOG Resources (EOG) 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, expanding profit margins, good cash flow from operations, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. 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:
- EOG's very impressive revenue growth greatly exceeded the industry average of 35.2%. Since the same quarter one year prior, revenues leaped by 76.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for EOG RESOURCES INC is currently very high, coming in at 82.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.20% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 62.20% to $1,272.28 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 30.83%.
- 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 862.8% when compared to the same quarter one year prior, rising from -$70.91 million to $540.88 million.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
Rating Change #2
The Dow Chemical Co (DOW) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels 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:
- DOW's revenue growth has slightly outpaced the industry average of 14.2%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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. 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 ($2.65 versus $1.73).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 50.8% when compared to the same quarter one year prior, rising from $597.00 million to $900.00 million.
- Net operating cash flow has increased to $1,238.00 million or 25.81% when compared to the same quarter last year. Despite an increase in cash flow, DOW CHEMICAL's average is still marginally south of the industry average growth rate of 30.26%.
Rating Change #1
Eni SpA (E) 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, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 34.6%. Since the same quarter one year prior, revenues rose by 48.4%. 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.
- ENI SPA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, ENI SPA increased its bottom line by earning $4.62 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($5.88 versus $4.62).
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ENI SPA's return on equity is significantly below that of the industry average and is below that of the S&P 500.
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