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 both 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.
Xyratex (XRTX) makes computer storage systems. It has been downgraded to hold from buy. The company has shown a deteriorating net income, disappointing return on equity and poor profit margins. Revenue fell significantly faster than the industry average of 7%.
Since the same quarter a year ago, revenue fell by 26.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. The gross profit margin is rather low; currently at 18.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.90% trails that of the industry average. It had been rated buy since March 2007.Horizon Lines (HRZ) is a container shipping and integrated logistics operations company. It has been upgraded to hold from sell. The company has shown solid stock price performance, compelling growth in net income and notable return on equity. Powered by strong earnings growth and other important driving factors, this stock has surged by 111.78% over the past year, outperforming the S&P 500 index during the same period. The hold rating indicates that TheStreet.com Ratings does not recommend additional investment in this stock despite its gains in the past year. It had been rated sell since October 2006.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV