Barrick Gold, First American: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model downgraded Barrick Gold(ABX Quote) to "hold."

The numbers: The company swung to a third-quarter loss of $5.4 billion, or $6.07 a share, from a profit of $254 million, or 29 cents a share, in the year-earlier period due to an accounting change related to hedge elimination. Revenue grew 12% to $2.1 billion. Barrick's gross margin was unchanged at 42%, but its operating margin rose from 21% to 24%. The company holds $6.5 billion of cash and just $5.1 billion of debt.

The stock: Barrick Gold has fallen 2% this year, underperforming major U.S. indices. The stock pays a 1.1% dividend yield.

The model upgraded insurer and financial service company First American(FAF Quote) to "hold."

The numbers: The company swung to a third-quarter profit of $55 million, or 59 cents a share, from a loss of $8.3 million, or 9 cents a share, in the year-earlier period. Revenue grew 3% to $1.6 billion. The company's gross margin rose from 6% to 12% and its operating margin jumped from 2% to 8%. First American holds $1.2 billion of cash and just $909 million of debt.

The stock: First American has advanced 5% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 31, a premium to the market and insurance peers. Shares pay a 2.9% dividend yield.

The model downgraded Illumina(ILMN Quote), a designer of genetic analysis tools, to "hold."

The numbers: The company swung to a third-quarter profit of $17 million, or 12 cents a share, from a loss of $10 million, or 8 cents a share, in the year-earlier period. Revenue grew 5% to $158 million. The company's gross margin rose from 67% to 68% and its operating margin increased from 17% to 19%. Illumina holds $760 million of cash and just $289 million of debt.