GameStop, Moody's: Ratings Changes

BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded EnerNOC(ENOC Quote), a company that helps companies and utilities manage energy use, to "hold."

The numbers: The company swung to a third-quarter profit of $27 million, or $1.12 a share, from a loss of $3.1 million, or 16 cents, in the year-earlier period. Revenue more than doubled to $27 million. EnerNOC's gross margin rose from 43% to 50%, and its operating margin climbed from negative territory to 25%. The company has an admirable financial position, with $130 million of cash and $4.5 million of debt.

The stock: EnerNOC shares have more than quadrupled this year, beating major U.S. indices. The company posted losses in the first and second quarters. EnerNOC doesn't pay dividends.

The model downgraded Gaylord Entertainment(GET Quote), which owns hotels and convention centers, to "sell."

The numbers: Gaylord's third-quarter loss widened to $12.9 million, or 31 cents a share, from $5.5 million, or 14 cents, a year earlier. Revenue dropped 12% to $199 million. The company's gross margin rose from 35% to 39%, but its operating margin was unchanged at 3%. A quick ratio of 1.2 demonstrates adequate liquidity. A debt-to-equity ratio of 1.4 reflects higher-than-ideal leverage.

The stock: Gaylord has risen 61% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 67, elevated by recent losses. The company doesn't pay dividends.

The model downgraded video game retailer GameStop(GME Quote) to "hold."

The numbers: Fiscal second-quarter profit decreased 32% to $39 million, or 23 cents a share, as revenue declined 4% to $1.7 billion. GameStop's gross margin rose from 27% to 29%, but its operating margin fell from 6% to 4%. A quick ratio of 0.2 indicates weak liquidity. A debt-to-equity ratio of 0.2 reflects modest leverage.