Stock Upgrades, Downgrades from TheStreet.com Ratings

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Electronics manufacturing services company Benchmark Electronics(BHE Quote) has been upgraded to a buy from a hold. The company's revenue growth of 15.5% in its first quarter of 2007 compared with the year-earlier period outpaced the industry average, and its very low debt-to-equity ratio of 0.02 suggests very successful management of debt levels. Net operating cash flow increased 321.38% to $94.5 million in the first quarter compared with the same period in 2006. Benchmark had been rated a hold since March 2007.

Ferro(FOE Quote), a specialty materials and chemicals producer, also has been upgraded to a buy from a hold. The company's net operating cash flow increased by 181.1% to $63.8 million in the first quarter of 2007 compared with the year-earlier period. Its stock price has increased 31.9% over the past 12 months, making it somewhat expensive compared with the rest of the industry. Given its other strengths, the higher price level is justified. Ferro had been rated a hold since June 2005.