Stock Upgrades, Downgrades from TheStreet.com Ratings

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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.

Broadway Financial(BYFC Quote) is the holding company for Broadway Federal Bank, a provider of savings and loan products in Mid-City and South Los Angeles. It has been downgraded to a hold from a buy. It is reasonably valued, and its profit margins are expanding.

The company's revenue grew by 18.6% in the second quarter compared with the same period last year, though the growth does not seem to have trickled down to its bottom line. Earnings decreased 36.85% in the same time frame, to 12 cents per share in the second quarter from 19 cents per share a year earlier. As a counter to its strengths, the company has had a trend of declining EPS over the past two years, weak operating cash flow and its stock price has fallen 3.66% in the last 12 months. Broadway Financial had been rated a buy since September 2005.