Stock Upgrades, Downgrades from TheStreet.com Ratings

Health Care REIT(HCN Quote), a real estate investment trust, has been downgraded to hold. The company has seen robust revenue growth, an increase in net income and expanding profit margins, but its return on equity has been disappointing, and earnings per share growth has been feeble. Health Care REIT recently reported that its second-quarter net income slipped 14% to 32 cents.

Normalized funds from operations increased 5% and the company's revenue growth greatly exceeded the industry average. However, this growth in revenue does not appear to have trickled down to the company's bottom line. Health Care REIT also said it completed net new investments year-to-date totaling $610 million. The company had been rated buy since August 2006.

Insight Enterprises(NSIT Quote), a computer hardware and software distributor, has been upgraded to buy. The company has a largely solid financial position with a solid stock price performance and an impressive record of growth in revenue and earnings per share. These strengths are expected to outweigh the company's low profit margins.

Insight Enterprises recently said that second-quarter net sales increased 64% to $1.28 billion and gross profit grew 81% to $184.8 million. Also, net earnings from continuing operations increased 77% to $26.8 million and diluted EPS from continuing operations grew 74% to 54 cents a share, the highest in the company's history. Insight Enterprises had been rated hold since May.