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.

Arbitron(ARB Quote), a media and marketing information services company, has been downgraded to hold. While the company has reported revenue growth, expanding profit margins and a solid stock price, it has also seen feeble growth in earnings per share, and deteriorating net income and premium valuation. Last week, Arbitron said second-quarter revenue increased 6.6% to $79 million. However, earnings slipped 49% to $3.8 million, or 13 cents a share. The company also lowered the upper range of its full-year forecast to a level below Wall Street's expectations. Arbitron had been rated a buy since November.

Chipmaker Cypress Semiconductor(CY Quote) has been upgraded to buy. The company's stock price has performed solidly, with impressive growth in revenue and earnings per share and notable return on equity. These strengths should outweigh the company's low profit margins. Last week Cypress Semiconductor said second-quarter revenue climbed 41% to $372.8 million. The company posted adjusted earnings of $26.8 million, or 16 cents a share, compared with $21.9 million, or 13 cents per share, in the 2006 quarter. Cypress Semiconductor had been rated a hold since July 2005.