Western Union, U.S. Steel: Ratings Changes

TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.

TheStreet.com's stock-rating model upgraded coal processor Massey Energy(MEE Quote) to "buy."

The numbers: Third-quarter profit decreased 70% to $17 million, or 19 cents a share, as revenue dropped 15% to $642 million. Massey's gross margin declined from 23% to 22% and its operating margin fell from 14% to 8%. A quick ratio of 2 reflects adequate liquidity. A debt-to-equity ratio of 1.1 indicates higher-than-ideal leverage.

The stock: Massey Energy is up 110% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 18, a discount to the market and coal and consumable fuel peers. Shares pay a 0.8% dividend yield.

The model upgraded real estate investment trust Tanger Factory Outlet Centers(SKT Quote) to "buy."

The numbers: Third-quarter net income dropped 61% to $4 million and earnings per share plummeted 79% to 6 cents, hurt by a higher share count. Revenue surged 91% to $121 million. Tanger's gross and operating margins rose from 33% to 61%. The company holds just $4.4 million of cash reserves. A debt-to-equity ratio of 1.2 indicates higher-than-ideal leverage.

The stock: Tanger is flat this year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 24, a premium to the market, but a discount to retail REIT peers.

The model upgraded Teleflex(TFX Quote), a maker of specialty products for the medical and aerospace and defense industries, to "buy."

The numbers: Third-quarter net income declined 9% to $38 million, hurt by a loss from discontinued operations, but earnings per share climbed 18% to 87 cents. Revenue dropped 8% to $461 million. The company's gross margin increased from 42% to 43% and its operating margin rose from 14% to 16%. A quick ratio of 1.4 demonstrates adequate liquidity. A debt-to-equity ratio of 0.8 indicates reasonable leverage.