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.

Invesco(IVZ Quote), an investment management company, has been upgraded to buy. The company has an impressive record of growth in earnings per share, net income and revenue, along with expanding profit margins and good cash flow from operations.

Invesco recently reported that second-quarter net income rose 42% to $261.5 million, or 21 cents a share, while revenue climbed 22.9% to $722.5 million, including $34.4 million in performance fees. Total assets under management increased 19% to $491.6 billion. Net inflows for long-term products totaled about $700 million, and money market net inflows were $1.8 billion. Invesco had been rated hold since June.

Macerich(MAC Quote), a real estate investment trust, has been upgraded to hold. The company has seen growth in revenue and earnings per share, as well as expanding profit margins. However, net income has been quite unimpressive.

Macerich recently reported that second-quarter funds from operations increased 18% to $100.7 million, or $1.04 a share, from a year ago. Wall Street was expecting the company to report FFO of $1.03 a share. At the same time, net income sank 48% to $13.4 million, or 19 cents a share, while revenue increased 3% to $215.8 million. Macerich had been rated sell since June.