Barrick Gold, Anadarko: Ratings Changes

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

The numbers: Second-quarter net income rose 1% to $492 million, or 56 cents a share, as revenue grew 3% to $2 billion. Its gross margin fell from 53% to 49% and its operating margin rose from 30% to 31%. A quick ratio of 1.6 demonstrates ample liquidity. A debt-to-equity ratio of 0.3 is below the industry average, indicating restrained leverage.

The stock: Barrick Gold is flat this year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 50, a premium to the market and gold peers. Shares pay a 1.1% dividend yield.

The model upgraded Anadarko Petroleum(APC Quote) to "buy."

The numbers: The company swung to a second-quarter loss of $226 million, or 47 cents a share, from a profit of $23 million, or 3 cents a share, in the year-earlier period. Revenue fell 29% to $1.7 billion. Its gross margin rose from 53% to 56%, but its operating margin fell into negative territory. A quick ratio of 1.5 reflects ample liquidity. A debt-to-equity ratio of 0.7 demonstrates reasonable leverage.

The stock: Anadarko Petroleum is up 63% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 12, a discount to the market and oil and gas peers. Shares pay a 0.6% dividend yield.

The model upgraded CommVault Systems(CVLT Quote), maker of data management software, to "buy."

The numbers: Fiscal first-quarter net income dropped 30% to $2.4 million and earnings per share declined 25% to 6 cents. Revenue grew 10% to $60 million. Its gross margin remained steady at 86% and its operating margin climbed from 8% to 10%. A quick ratio of 1.9 and $119 million of cash demonstrate ample liquidity. The company holds no debt.